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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have massive credit card debt (about 40k) with this one ...

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I have massive credit card debt (about 40k) with this one lender (multiple accounts). The minimum monthly payments are killing me. I've called them to try and work out a repayment plan for both accounts but they won't help because I am not behind in my payments. I am ashamed to admit it, but I have decide that the best approach is stop paying one of the accounts and just focus on the other. I plan on taking the usual minimum for account 1 and adding it to the minimum of account 2. I know that creditors can "freeze" your bank accounts after a long drawn out legal process, but my question is how do they know where you bank? I do pay my bills with checks or with my bank's online bill paying service so if I switch banks and then use money orders only, will they be able to track my accounts down and "freeze" them. As an aside, my employer only offers direct deposit so I have to maintain some sort of bank account.

Hello,

Thank you for your question. I am happy to assist you.

You are likely correct that the credit card company is not working with you because you are up to date on your payments. However, when you stop paying on one card, they will likely cancel both cards.

A better plan of action might be to save the money that you are paying for the monthly payments. After several months of nonpayment the credit card company may be willing to negotiate with you and you will have the funds to make a larger payment.

A creditor must file suit and have their claim reduced to judgment prior to attaching a bank account. You will have typically have plenty of notice.

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,

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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
My son has an account with my name on it as a custodian. Is that account up for grabs too since my name is XXXXX XXXXX? (assuming this whole mess got to that point?)
Hello,

A custodial account should not be attached for your debt. However, it often happens that a custodial account will be attached and the debtor will then have to have the attachment lifted. That being said, if you are sued, you may want to consider putting someone else's name as custodian to avoid the problem.

I hope that this helps you.

THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE


Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Hi. Me again....I've read that NY is a tenancy in the entirety state. If my husband and I open a joint marital account, is it true that a creditor cannot levy the account since only one spouse is responsible for a debt? Also, does the same apply to our house? If I change the deed from joint tenants with right of survivorship to tenants in the entirety, will I be safe from a creditor placing a judgment lien on our house?
Hello,

Welcome back.

In New York, a tenancy by the entirety applies only to ownership of real estate. It is not applicable to personal property such as a bank account.

When a married couple purchases real property in NY, they take title by tenancy by the entireties unless the deed specifies otherwise. You will want to check your deed to see how your title is held. If it is entireties property, a creditor of one spouse can obtain a lien on that spouse's interest but will only be able to enforce the lien if the debtor spouse is the surviving spouse.

I hope that this helps.

THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Ellen and other Bankruptcy Law Specialists are ready to help you