Thousands of verified Experts are ready to answer your specific questions 24/7.
Satisfaction is guaranteed and you pay your Expert only if you are satisfied.
Just type your detailed question and click "Get an Answer."
In minutes you'll get a response from an Expert. You can always ask follow-up questions.
Happy with your answer? Just click "Accept" to pay your Expert.
I had my business account funds levied by a creditor for a personal matter. (I am a sole proprietor so I know this is legal). I should be except because I made less than what the exemption statute allows but on my tax return my income and my husband's income are more than the statute allows. Do they go off of our combined income or my individual income (this is my own individual debt). I have to fax the documents to the bank and creditor today and wanted to know.
State/Country of Question: Minnesota Already Tried: This is in Washington County District Court in Minnesota. My annual income is 6,908, which is self-employed income. My husband's income is from a regular job, with W-2's. Our combined gross income is 66,337. The levy against my account (which is a business account and the funds in the account were held in trust for clients) was 6,198.21. I know they can take the funds out of the account because I am a sole proprietor and that does not fall under the exemption guidelines, but I should be exempt under the guidelines because I make less than 40 times the federal minimum wage. The only factor I am concerned about is if they take my wage or if they take our combined income. This debt is from 2000 and I was not even married until 2004. I am the only one on the debt. I have not received any of the exemption papers or garnishment papers. I only knew they took this money out of the account because it was gone from the account. I have had to download the exemption papers from the internet and find court file numbers, etc., from calling the clerk of court. I need to file these with the bank and creditor today in order to be within my time allowance of 14 days from the date the funds were withdrawn.
Good morning,I'm sorry to hear of your dilemma.What state do you live in?
I actually live in Wisconsin. But this matter is in Minnesota. It was filed in Washington County District Court in Minnesota in 2000. I moved to Wisconsin last year and the creditor was unaware of my move or any change of address as they have not tried to contact me since 2001. They didn't serve me any papers, only my bank, which is located in Minnesota and the bank withdrew the funds.
Good morning,Perhaps it's time to change banks?If the debt is yours, and only yours, you should ask the court for an exemption base on your income.You didn't receive any garnishment papers because you changed your address and didn't notify the court and or the judgment creditor.If you are operating an account with client funds, you might consider asking the bank if you can open up a client trust fund. That should protect those funds not belonging to you.In the meantime, you should consider applying to the court for a return of the funds to the extent they were not yours, as they do not represent your income.I wish you well.
Best regards,
Doug
I'm not entirely certain my question was answered. I do not believe the court will return the funds based on "they were not mine", as they were in an account with my name on them. I also understand the fact that I did not provide change of address, it has just been a bit trying attempting to secure the exemption papers, etc., with little to go on, but I am aware that is my own doing and can seek no remedy in regards XXXXX XXXXXMy primary question is are funds exempt based on the individual debtor's income or do they look at the tax return combined household income, which would include earnings of all sources (individuals). In Minnesota does an individual debt become a marriage debt when you get married and so they look at combined incomes (total household income) rather than just the individual debtor's income who the judgment is against. Maybe rephrasing it this way will assist you better in understanding my question.
Good morning,Only your income is relative to your personal debt. Your husband's income is exempt from consideration when it comes to a personal debt of yours.In no state does a debt acquired before marriage become a marital debt upon marriage.I wish you well.
Thank you very much. Upon my clairification of what I needed to know you gave me the answer to the question that I needed to know. I wish you well and appreciate your assistance.
Thank you for your kind words.If I have helped you understand the situation better, it would be appreciated if you would Accept my answer so that I can receive credit for having helped you.Best regards,Doug
Attorney
I am a practicing attorney with more than 27 years of experience in the legal field.