My bank account just got a legal hold on funds from a credit card debt about 10 years ago will they garnish?i only had like 50 bucks in my account and the bank said they would need another court order to take money from my account again, but im worried they will garnish my wages. |
That sounds suspicious. Every state has a statute of limitations on debts owed, like in my state it's 6 years. Some states do have a statute as long as 10 years, but if it's over the 10 years they can't up and take money from your account.
Pretty much, the statute of limitations means that once the time period is up, you are still liable for the amount owed, BUT whomever it's owed to can no longer take any legal action against you once the statute is up. So they can't sue you, garnish wages, etc. Pretty much once something is past the statute don't bother with it because they can no longer call you or threaten you with a lawsuit, and I don't think anyone would willingly pay a debt that the collector can no longer do anything about.
Also, things only stay on your credit report for 7 years, so this credit card probably isn't even included on there anymore.
I would try and see if you could get your money back!
A judgment will allow them to garnish your wages @ up to 25% in CA.
Many bottom-feeder debt collectors have figured out that if they "accidentally" serve you a summons to an old/incorrect address where they know that you won't be there.....that you will be a "no show" on the court date because you weren't aware of it.....Then, an automatic default judgment is assessed against you. This is how these bank account freezes usually occur out of the clear blue sky.
See my answer (CatDad) at the following link for more info:
http://answers.yahoo.com/question/index?...
Until you get this sorted out, you'll have to stay "off the grid." Buy a safe and use cash only. Use money orders to pay for any bills. Photocopy for your records. Otherwise, if you open up another bank account, it could get frozen and emptied again.
They can only garnish with a court order and some states do not allow that at all, unless you have child support or tax debts. You might want to start showing up to your court summons.
Yes if your account has insufficient funds to pay the judgment they will garnishee your salary up to 25%
