Legal Question in Credit and Debt Law in Virginia

A Company received a judment to collect a debt. I checked my bank account today and they have put a freeze on all of my accounts. I received notice of the court date but never received anything that stated they gained a judgement. What options do I have? Creditor states that they can freeze my account for 1 year or I can sign something to authorize them to take it now...The entire balance is not in my account even for them to take...What can I do? Also this money is all that we have from my paycheck...Do I have any rights or is it too late and what should I expect? Also, I live in NC and the judgement summons paper was mailed to me from a VA court...I do want to pay them, don't they have to notify me that they got the judgement and transfer it to NC before freezing my account?

Thanks


Asked on 2/25/10, 4:42 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

If the bank has branches in Va., they can garnish the account here. If you were served with the lawsuit, and didn't appear, you would not receive any further notice that judgment was entered on the return date. You have the right to file a claim of exemptions as to the money in the account - to the extent you can show it is traceable to wages, you may be able to exempt 75% of it. You may also be able to file a homestead deed an an exemption claim form and exempt additional amounts (although this right is arguably limited to residents of Va.). You will need to appear in court in Va. to do this, or have a lawyer do it for you. Alternatively, if you file bankruptcy within 90 days of the date the garnishment or notice of lien was served on the bank, in most cases you will be able to get the money back.

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Answered on 3/02/10, 5:50 pm


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