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Tlaszlo · Feb 22, 2007, 06:01 AM

My bank account was frozen a few months ago by a debt collector.I just became a sole proprietor working as a subcontractor for a company.

I need to cash my checks.
What happens if I open another account with a different bank?
Is there any way that this could be done?
What if I open in another state?
Thank you
Les

moomin007 · Feb 22, 2007, 06:57 AM

Hi,
It may depend if the cheques are to you or to the business. Most banks will cash a cheque as long as you have proof of ID ( ownership of the cheque) and proof of address (residence status). There will be a charge for this. Some banks will do a flat rate, others will charge a % of the value.
Also, speak to your local citizens advice or the branch where you bank.

You need to speak with the debt collectors to see how you can unfreeze your account.
hope this helps

good luck

ScottGem · Feb 22, 2007, 07:05 AM

You can open another account but the odds are they will eventually find that as well. Have you tried negotiating a settlement with them?

Fr_Chuck · Feb 22, 2007, 07:14 AM

If you open another bank account, then if they find it, they can get a attachment on this one also.

You need to have the checks in your name, not a business name, and merely cash them at a check cashing store or a bank.

landlord advocate · Feb 22, 2007, 07:29 AM

If you have no intention of contacting the debt collector, then you are going to have to live with this. Obviously the amount of money is enough to keep them active in pursuing payment.

What would happen if instead of a sole proprietorship, you decided to become an S Corp. Checks would be made out to the S Corp, not to you. Since you are now an officer of the S Corp and not the owner, I wonder if the collection agency could attach the account. I doubt it. This is strictly speculation, and I would love to here comments.

FYI: The collection agency has to find an account before it can attach it. One way to do that is to require the debtor to file a Writ of Assets with the court. If you have a personal bank account, you are going to have to disclose it. Then they will attach it just the same as they did the current one.