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  1. #1
    Join Date
    Sep 2010
    Posts
    8

    Default What Type of Bank Accounts Are Not Leviable

    My question involves judgment recovery in the State of: NY

    If a checking/savings account can be levied, what types of accounts can a debtor open in order to pay bills and such without risk of it being "cleaned out" one day?

    I was doing a little reading and I learned that there are some types of accounts that are immune to this, it didn't indicate which.

  2. #2

    Default Re: What Type of Bank Accounts Are Not Leviable

    Property exempt from judgment in the State of New York is listed here: http://law.justia.com/newyork/codes/...5205_5205.html

    You should be aware that you don't have to worry about your account being "cleaned out" until there is a judgment against you, at which point the judgment creditor can garnish your accounts until the judgment has been satisfied.

    If you have a judgment against you, you may want to negotiate with the judgment creditor over a payment plan that leaves your bank account, wages, etc, untouched. If you are unwilling or unable to come to an agreement with the creditor, and if the creditor does have a judgment, your bank accounts are in danger and you are probably well advised to find other ways to keep cash on hand and to pay your bills. Sticking to cash and paying bills with money orders is one option. Another option is getting a pre-paid debit card, such as the WalMart money card, and putting your cash onto that. Some folks have kept cash in the form of travelers' checks or simply under their mattress. Do be aware that if the court requires you to undergo a debtor's exam, you will be obliged under the law to truthfully disclose all of your assets regardless of where you have them.

    Incidentally, one clever strategy to avoid bank account garnishment is to move all of your money into an Internet bank with a sole physical location in the state of Delaware, which does not allow attachment of bank accounts to judgments, even if those judgments are foreign judgments domesticated in the state of Delaware. Again, you will still have to disclose these funds on the debtor's exam and turn them over if ordered by the court, but it would give you the security of knowing that your funds won't disappear without your knowledge.

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