I had a couple come in a couple of months ago. They had a small business, and had not been able to pay a vendor, i.e. someone that sold them supplies for their business. The vendor had filed a lawsuit and the couple had not shown up in court to oppose it. Well, long story short, the court had issued a judgment. Only now, it included attorney fees and court costs, increasing the amount owed by about one-third.

And that's not the worst of it- the vendor's attorney had garnished the couple's bank account, and seized $8,000! All the money that they had in the world. Don't let this happen to you. By luck, in the limited circumstances of this couple's case, we were able to file a Chapter 13 bankruptcy and get the funds released. But that may not happen in your case; count on it NOT happening.

If you have a judgment against you, just get your money out of the bank. And go see a professional in this area (such as myself) that can give you advice about what to do next. Oh, and by the way, if you owe money to the bank where your checking or savings accounts are, the SAME THING APPLIES!

Get your money out of those banks, if you are in default with them, or in danger of being in default. They can "freeze" or put an administrative hold on the funds, even in bankruptcy. Outside of bankruptcy, they can offset the funds, just take them, anytime you are in default with them, or anytime they "deem themselves insecure," depending upon the terms of your agreement with them. Don't let your cash money be seized by a creditor, or by your bank, if you are having money troubles.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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