Legal Question in Credit and Debt Law in Missouri
I have still another question regarding a collection agency garnishing a bank account. If my son who owes a hospital bill (which he can't possibly pay due to a kidney stone operation) deposits his student loan money into a checking account which I open in my name (only), there is no way a creditor can get to this money, is there? I have read that creditors can get a court judgment to require the debtor to reveal where all their assets are. Would he be required to say: "It's in my father's bank account." And then could the creditors somehow still get to this money? I certainly wouldn't think so, but I need to be sure.
1 Answer from Attorneys
A creditor with a Judgment can require your son to attend a Court hearing on a Motion for Examination of the Judgment Debtor. At that hearing the attorney for the creditor will be asking questions trying to locate assets upon which the creditor can collect on its Judgment. Of course, your son would have the right to decline to answer based upon his 5th Amendment right not to incriminate himself, and the Judge should allow his to do so unless the attorney for he creditor can show that there is no way that answering a particular question could incriminate your son. In addition, the law allows a creditor the right to attempt to obtain a Judgment setting aside a "fraudulent transfer" which would be a transfer of assets out of your son's name for the purpose of avoiding collection by the creditor. So, your plan is not foolproof. Perhaps your son should seek the assistance of a Bankruptcy attorney.
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