Legal Question in Credit and Debt Law in Virginia

Re: bank account garnishment

I am not sure what you are asking.

They probably will not file it again, knowing how debt collection law firms work, from personal experience. However, they certainly could. If they believe that that situation might only be temporary, they might try again.

However, it is more likely that they will try to call the debtor in for "debtor's interrogatories" and find out where the debtor's "new" bank account is (because that is what they will most likely assume), where the debtor works, and any other information that might help them collect.

Unfortunately (from the debtor's point of view), the bank will probably keep the bank account "frozen" through the court date at the end of the garnishment proceeding.

So if any more money is put into the bank account before the court date, this will automatically be turned over to the debtor on the court date.

NOTE: It is an interesting twist, but if the balance is negative, I am fairly certain that if the debtor deposits the exact amount by which the account is overdrawn, which one must do to avoid getting in trouble with the bank, the bank will keep this money and will not turn it over, and will report a $0 balance.

That is because of the way that the law is written, the debtor can only garnish money that the bank "owes" to the debtor or is holding for the debtor. If the account is in the negative, any money needed to bring it back up to $0 is NOT money that the bank "owes" to the debtor which can be subject to a garnishment.

I would expect the bank to object to turning that over (even if they report it at all) and I would be very certain the bank will win the argument on that score.

So I would recommend bringing the account up to $0 to avoid being in breach of the debtor's responsibilities to the bank, and possibly worse consequences (such as writing a bad check).

Re: bank account garnishment

I am not sure what you are asking.

They probably will not file it again, knowing how debt collection law firms work, from personal experience. However, they certainly could. If they believe that that situation might only be temporary, they might try again.

However, it is more likely that they will try to call the debtor in for "debtor's interrogatories" and find out where the debtor's "new" bank account is (because that is what they will most likely assume), where the debtor works, and any other information that might help them collect.

Unfortunately (from the debtor's point of view), the bank will probably keep the bank account "frozen" through the court date at the end of the garnishment proceeding.

So if any more money is put into the bank account before the court date, this will automatically be turned over to the debtor on the court date.

NOTE: It is an interesting twist, but if the balance is negative, I am fairly certain that if the debtor deposits the exact amount by which the account is overdrawn, which one must do to avoid getting in trouble with the bank, the bank will keep this money and will not turn it over, and will report a $0 balance.

That is because of the way that the law is written, the debtor can only garnish money that the bank "owes" to the debtor or is holding for the debtor. If the account is in the negative, any money needed to bring it back up to $0 is NOT money that the bank "owes" to the debtor which can be subject to a garnishment.

I would expect the bank to object to turning that over (even if they report it at all) and I would be very certain the bank will win the argument on that score.

So I would recommend bringing the account up to $0 to avoid being in breach of the debtor's responsibilities to the bank, and possibly worse consequences (such as writing a bad check).

NOTE: The debotr is also not totally helpless here.

I would recommend PROPOSING a payment plan to the creditor to get this worked out on a voluntary basis and avoid surprises and out-of-control actions that might be more problematic.

I RECOMMEND SENDING IT IN WRITING, because the phones are always ringing off the hook and it is very hard to deal with such things by phone.

If you send a letter, it will go in the file, and will not be forgotten.

Do not admit that you owe any money nor even promise to pay, but say "IF I pay $X per month, will you accept this plan."

Be sure to give them details why you cannot pay more, because they don't know that.