Can a creditor impose a bank levy on an out-of-state bank account?

1 views 1 answers
I have a bank account in a different state than the state I reside. If there aren't any branches near my home can creditors still impose a bank levy? Also, about how long would an account have to be past due before I might see any such action?

Attorney Answer

1
Mark Hankins ·
To levy on an out-of-state bank account the creditor would first need to know about it. Assuming the creditor had somehow obtained knowledge of where it was kept, the creditor would need to domesticate the judgment (typically using the UEFJA) to a state where a branch of the bank could be found (unless the state is Delaware, which some folks say has no procedure in place for a non-governmental creditor to get at a bank account). A UEFJA filing must be served on you in the same manner as a new lawsuit, and assuming that the creditor was not able to use some sort of pre-suit freeze to get at the account before serving the UEFJA filing on you there would be time for you to move the money. Now what I've said is not a license to play hopscotch through the 50 states--the judgment creditor can also get a "turnover order" in your home state that would basically put you in contempt of court if you made your next move--or even take you into involuntary bankruptcy. But as a practical matter, banking at a distance often keeps your money in your hands not theirs.
0 upvotes