Found an issue on this page? Let us know and we will look into it as soon as possible.
Is it wise to open a separate bank to avoid unpaid bills if a creditor attempts to put a freeze on your (spousal) account?
Anonymous3 views5 answers
I am in the midst of attempting to settle a debt with a creditor; I know it is a possibility for them to freeze my bank account; but I also know they are unable to garnish anything from it because it is a spousal account. I am wondering if it is wise for me to open another account and have our money moved to that account so we would be able to pay our bills in lieu of the process of them freezing/unfreezing the account???
You have a lot going on here. First off, you should consult with a consumer attorney to see if you even should settle the claim. Most of us offer free consultations. Having said that, you haven't mentioned whether you have been sued, or, whether there is a judgment. Both of those things are required before an account can be frozen. If the creditor knows where you bank (they don't need the account number, they only need the institution name) then they can freeze an account after judgment. Having an account that the creditor does not know of can help short term.... but they eventually may locate that account (you may be forced to identify the account in a deposition or via interrogatories).
Obtain a more in depth consult, that is the best advice that can be given here.
You need to step very carefully with your actions because there is a law referred to as the "uniform fraudulent transfers act" that could land you in a criminal court if the particular circumstances result in your doing something that is against this law. As a general rule, a creditor must typically obtain a court judgment to be able to freeze the bank account. The most common exception to this rule is if the creditor is in fact your own bank. Hope this perspective helps!
The short answer is that I do not think it is wise to try to open a "secret" account. There are motions that can be filed to obtain information to determine where you have assets. Operate above board to prevent costly mistakes. An attorney in your area can help you to do things properly.
William Ray PelgerCriminal Defense AttorneyMunhall, PA ·
As stated by Attorney Artim, consult with a consumer attorney before you do anything as the creditor has the upper hand in negotiating with you without someone who knows the law at your side. As stated you need a judgment to be taken against you before any account can be frozen or personal or real property seized.
Consult an attorney before you engage in any asset transfers. You do not want to make any transferee a defendant in a fraudulent conveyance action. An attorney can discuss and advise you on legal asset protection strategies.
