Check out some similar questions!

john1966 · Sep 28, 2006, 08:07 AM

An attorneys office placed a levy on our bank accounts 1 week ago today for a debt my wife owes. I am currently separated from my wife, however, she is on the account. She does not work and all the money in this bank account came from my direct deposit and I need it to support our 3 children. This debt is her debt, I never co-signed on the debt. Also, the bank account and attorneys are in another state from where I reside, so I can't just walk into the bank branch to get assistance (I just recently moved). Anyway, when I do call the bank they said I have to speak to the issuing agency who placed the levy, which I have gotten nowhere with. What can I do to release the levy from our bank account? I do not feel they should freeze these accounts as all the money in there came from me. I should have rights to protect my income, right? Or have we lost all our rights in this country altogether? It feels that way, sometimes. Please help me.

Also, does anyone knows what happens to all the fees incurred at the bank, for example, the $100 legal processing fee, overdraft fees, etc? Thank you

ScottGem · Sep 28, 2006, 08:37 AM

Your wife's name is on the account. There is a judgement against her. The creditor therefore was able to attach those assets. I doubt if there is anything you can do but go after your wife to reimburse you.

As for your rights, what about the rights of the creditor to collect on a valid debt? From where I sit, your wife incurred a debt, she reneged on it for whatever reason, the creditor then sued her obtaining a judgement (so she was given her right of due process). I don't see where anyone's rights were not respected here.

The only issue I see is how her name was on the account. If it was a joint account, then they had ever right to seize it. Maybe they couldn't take more than half, but that might be the only limitation. So your beef is with your wife for not informing you that she was sued for a debt and had a judgement awarded. Again, the only recourse I see if to sue her to reimburse you.

john1966 · Sep 28, 2006, 08:46 AM

Originally Posted by ScottGem

Your wife's name is on the account. There is a judgement against her. The creditor therefore was able to attach those assets. I doubt if there is anything you can do but go after your wife to reimburse you.

As for your rights, what about the rights of the creditor to collect on a valid debt? From where I sit, your wife incurred a debt, she reneged on it for whatever reason, the creditor then sued her obtaining a judgement (so she was given her right of due process). I don't see where anyone's rights were not respected here.

The only issue I see is how her name was on the account. If it was a joint account, then they had ever right to seize it. Maybe they couldn't take more than half, but that might be the only limitation. So your beef is with your wife for not informing you that she was sued for a debt and had a judgement awarded. Again, the only recourse I see if to sue her to reimburse you.

Kind of a harsh way to answer there, Scott. As far as rights, I do understand the creditor has a right to collect. But I honestly was completely unaware of the situation, and if she has a judgement against her, it is her judgement, not mine. Therefore I feel that I should have rights to protect my income. My income, not hers. I believe I have asked a logical question and there should be a way to contest it. I have not lived with her for some time and I have no knowledge of any correspondence she receives. Thanks for the information.

Does anyone else out there have any other advice for me?

ScottGem · Sep 28, 2006, 08:58 AM

I may have been kind of harsh, but I was responding to your tone that that you were being denied your rights. I don't think that is the case at all. As long as you left your wife's name on the account, it was just as much hers as yours. She could have walked into the bank at any time and withdrawn all the money.

Whether the judgement is hers alone is moot. The issue is whether the assests seized were hers and as long as her name was on the account they were. If you haven't lived with her for some time, why was her name still on the account?

I doubt if anyone will tell you anything different then I did. You can find out what court the jusdgement was filed in and file an appeal of the judgement, but I don't think that will work since you weren't a party to the judgement. You can try obtaining a court order vacating the judgement against the assets on the grounds that they were not hers, but since her name was on the account, I doubt if that will work. So, again, your best option is to get reimbursement from her. In any of these cases you need to consult an attorney who can advise you of the best course of action. I don't see ANY course of action that doesn't involve going to court.

Oh and remove her name from the account immediately, or close it and open an account in your name only.

mr.yet · Sep 28, 2006, 09:14 AM

You must contest the levy in the court where you live, you must show the court that you are sepearted and the funds in the account belong to you alone. File motion to quash the levy.

john1966 · Sep 28, 2006, 10:06 AM

Originally Posted by mr.yet

You must contest the levy in the court where you live, you must show the court that you are sepearted and the funds in the account belong to you alone. File motion to quash the levy.

Mr Yet, Thank you. I will start working on getting that done right away. I appreciate your advice as it gives me somewhere to begin. The separation is legal, therefore I knew there was something I could do to protect myself, I just didn't know where to begin.

I was ignorant to the fact that there could or would ever be a levy placed on my account. I was never able to remove her from the account because we both had to be present to do it and it was near impossible, really. The same goes for trying to remove her from the account by myself, I can't. And closing it, the same issue. I am opening another account in just my name right away, but in the meantime, I need to try to get my money released before they take it all. Thanks again for your help.

ScottGem · Sep 28, 2006, 11:09 AM

Don't get your hopes up. The fact that the separation was legalized is the main thing in your favor. The fact that it's a separation and not a divorce mitigates that. The fact that you continued to use that account in both your names further mitigates it. At the least it will be a drawn out process that may take many months. Again you need an attorney to represent you, file the motions etc.

If the bank already turned over funds to the creditor, even if you quash the levy, you then need to take action against them to get the money back. All quashing the levy will do is prevent them from taking any more funds. And even if you do get the money they took back, they will not reimburse you for expenses like bounced check fees, atty expenses etc. What they did was perfectly legal. Not their fault you left your wife's name on the account.

john1966 · Sep 28, 2006, 11:37 AM

Originally Posted by ScottGem

Don't get your hopes up. The fact that the separation was legalized is the main thing in your favor. The fact that its a separation and not a divorce mitigates that. The fact that you continued to use that account in both your names further mitigates it. At the least it will be a drawn out process that may take many months. Again you need an attorney to represent you, file the motions etc.

If the bank already turned over funds to the creditor, even if you quash the levy, you then need to take action against them to get the money back. All quashing the levy will do is prevent them from taking any more funds. And even if you do get the money they took back, they will not reimburse you for expenses like bounced check fees, atty expenses etc. What they did was perfectly legal. Not their fault you left your wife's name on the account.

Wow, bummer. Big mistake on my part leaving her on the account. Live and learn. They have not turned over the funds yet, but I'm sure it won't be long now. This sucks because all of my money is in there. Thank goodness my employer can take me off direct deposit before the next paycheck goes in there. Thanks for the info Scott. I appreciate it.

ScottGem · Sep 28, 2006, 11:52 AM

If they haven't taken the money out, you need to get to your lawyer IMMEDIATELY. You need to get an injunction to the bank before they do take anything. At least that will stop them taking the funds and give you time to quash the levy. I still don't think you will recover any expenses though.

Also, once the levy is lifted you should be able to withdraw all the money without your wife's consent.

Depressed in MO · Sep 28, 2006, 12:51 PM

You say that you can't take just your or her name off the account without her being present and that is true. But I know for a fact you can close the account completely and she does not have to be present. She could have done the same thing to you because of her name being on the account. I guess it's just another hard lesson in life... Good luck with everything.

john1966 · Sep 28, 2006, 01:30 PM

Life is just full of hard lessons. Many of them we can prevent, though. I could have prevented this from happening if I wouldn't have been so ignorant. But the damage is done and now I have to deal with it the best I can. Thank you for your input. Once the Levy is lifted, I will be closing this account altogether.

Also, I'd like to thank Scott for taking the time to give me advice on my situation. I have made an appointment to see a lawyer in the morning to help me with this mess. Thanks for suggesting to act quickly, as it seems like time is of the essence before they take out the funds. Thanks.

I will let you know how everything turns out.

ScottGem · Sep 28, 2006, 04:26 PM

Good luck