I owe three banks and am currently unable to pay them. After my car was repossessed and auctioned, one of the banks I owed sent me a check for $15,000. Will there be any problems when I deposit this check? Will one of the other banks be able to freeze my accounts or take my money? If this is the case do I have any alternative?
Anyone to whom you owe money can initiate legal action to collect that money if your obligation to them is past due. Part of that legal action may be a judgment and execution or attachment of any funds you own that the creditor is able to identify. State law will determine how much of a "fishing expedition" your creditors may undertake to search for bank accounts in your name.
Obviously, to access the $15,000, you will have to negotiate the check. Placing it in a deposit account exposes whatever funds are in the account to the possibility of attachment. If you are able to keep the funds in some other form, the likelihood of attachment probably goes down.
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Anyone to whom you owe money can initiate legal action to collect that money if your obligation to them is past due. Part of that legal action may be a judgment and execution or attachment of any funds you own that the creditor is able to identify. State law will determine how much of a "fishing expedition" your creditors may undertake to search for bank accounts in your name.