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Are safe-deposit boxes at banks protected from creditors?
Anonymous5 views5 answers
This pertains to California safe-deposit boxes held at major banking institutions.. Are they fair game in creditor suits/judgements and wage-garnishment attempts? What is the reality on the street when it comes to someone else being able to access your deposit box?
Strictly speaking, it is the "contents" of the safe deposit box that "may" be fair game. A creditor with a judgment could obtain a write of attachment for the contents of a safe deposit box. At which point, the debtor would need to go to court (the court that issued the garnishment ) and claim an exemption if an exemption would apply to the contents. If no exemption applies, then the contents are turned over to the creditor.
However, I am with Robert...just deal with the "REAL" problem, resolve the debt. Pay it, settle it, declare bankruptcy. Living this cat and mouse game and living a life of creditor avoidance is no way to live. I am guessing your life wasn't always like this.
Lastly, the "reality on the street" is that safe deposit boxes are rarely hit by creditors. Two main reasons why (1) few people have them, and (2) those that do generally only keep important documents in them. The rest of the people who have safe deposit boxes are either wealthy, spies, or white collar criminals :)
Yes, the judgment creditor can obtain a writ of attachment to include all items held in any safe deposit box in the State, then serve it on the debtor's bank . Personal property of the defendant that is not exempt can be ordered by the court to be turned over to the Sheriff for satisfaction of an unpaid money judgment. Be safe and contact a debt collection DEFENSE attorney before this occurs.
By: Robert Stempler (please see DISCLAIMER below)
CONSUMER LAW OFFICE OF ROBERT STEMPLER
A Professional Law Corporation
Lisa Jane EspadaDebt Collection AttorneySan Francisco, CACA licensed ·
The contents of a safe-deposit box is vulnerable to creditors who have judgments, the same way that a checking or savings account is vulnerable. The creditor simply needs to know where the property is and follow the correct steps for execution of a bank levy. Once the law enforcement officer has the necessary paperwork and fee, a notice is sent to the bank, and there would be a period where the property is not available to you. You'd have to respond by filing a claim of exemption or some other action to avoid turnover of property (i.e., bankruptcy). Consult with a debt collection attorney if you are in this situation.
Hiding assets can be very dangerous to your financial future and could possibly be criminal if done with intent to defraud. Just be careful see an attorney for free consultation so everything can be reviewed at once. Best of luck while times are definitely tough.
