[kengram]

I've been reading some of the letters and there seems to be no definitive answer as to whether credit card companies --to which you owe money (unsecured debt) --can put a lien against bank accounts, housing etc.

I talked to the manager at my credit union recently. She said that only government debt can place a lien against the bank account. (taxes, student loans etc) Is that true or is she wrong? (Credit Union is in New York)

A question: Can a lien, due to unpaid credit card debt, be placed on jointly- owned Mitchell Lama middle income coop housing? (New York) Has this ever been done? (I think this can be answered only by someone familiar with the legalities of NY mitchell lama laws.) Thank you.

[ScottGem]

The laws vary from state to state. But in the vast majority, real property especially primary residential, is not attachable for unsecured debt. The most that could happen is a lien be placed against the property, which would need to be satisfied only at time of sale.

Bank Accounts, however, are cash assets and therefore open to attachment.

Now Mitchell-Lama Co-ops do present an interesting possibility (Just for background, I lived in a M-L coop 1st with my parents and later on my own for over 15 years. My mother also served on the coop board and the statewide M-L council). In a Co-op, you don't own your apartment, you own stock in a corporation. Your stock entitles you to the use of an apartment. Since stock is not considered a cash asset it wouldn't be attachable.

[kengram]

The laws vary from state to state. But in the vast majority, real property especially primary residential, is not attachable for unsecured debt. The most that could happen is a lien be placed against the property, whihc would need to be satisfied only at time of sale.

Bank Accounts, however, are cash assets and therefore open to attachment.

Now Mitchell-Lama Co-ops do present an interesting possibility (Just for background, I lived in a M-L coop 1st with my parents and later on my own for over 15 years. My mother also served on the coop board and the statewide M-L council). In a Co-op, you don't own your apartment, you own stock in a corporation. Your stock entitles you to the use of an apartment. Since stock is not considered a cash asset it wouldn't be attachable.

Thank you, scott, for a quick and knowledgeable reply. This is the first time i've used this site, and i never thought i'd reach someone so fast who even knew what m-l was! Perhaps you can answer another question. If a person's only income is social security and since social security cannot be attached for credit card debt, is it safe from attachment even when it is directly deposited in a bank---if that is the only money deposited in the account. -----or does it lose its immunity once it hits the bank? Thank you again if you can help with this.

[ScottGem]

From what I understand it loses its immunity once it hits the bank. If they garnished the account and any money was depostierd into the account it would go to the garnishee. You might be able to get it back by proving its source, but you would have to go to court to do so.

Yeah, unless you lived in one, you are unlikely to know what a M-L co-op is.