If a creditor or creditors are suing you for a debt you simply can't pay, you may get letters demanding money. The creditor may finally get a judgment. It can be frightening not knowing what could or can happen next. As a New Jersey debt relief lawyer, I can help you understand the process and determine what options you need to take to avoid creditors locating and levying on your bank account.

Ways Creditors Can Find Bank Accounts

Just because a creditor sues you and gets a judgment doesn't mean they know where your stuff is. They still have to find it to collect the debt, absent any payment from you. In my experience, there are two ways in which they can find out where you bank.

  • Previous records of payments. Have you made any payments to a collection agency or a law firm? They may have made copies of the checks before depositing them. This means that they have the routing and account numbers for your account. Having experience working with creditors, I used to tell them to make photocopies of checks as they came in just in case you would need the information.

  • You told them where the accounts were. You may have told the creditors about your accounts. If you did, you would know it and at least see the levy coming or know that you need to take action. How did you tell them? Because they sent you a document called an Information Subpoena requiring you to make full financial disclosure of assets, liabilities, and income sources. In essence, they forced you to tell them where your money was!

So What Do I Do?

If you haven't made payments to this creditor, its collection agents, or lawyers in a long time, or you changed banks since you did, you are most likely safe for now as long as you didn't answer their information subpoena.

But this does not mean that you should do nothing. It is only a matter of time before they do something, even if it's recording the judgment as a lien against your home (if you own it). They will do something; you will wake up one day to no money in the bank or an imminent wage garnishment, and by then, it may be too late. You need to take action now!

You're Not Alone

It's one thing to decide to make payment arrangements with the creditor; it's another to pick up the phone and call (and sometimes even more challenging to do it successfully)! I have helped many people establish an affordable payment plan with lawyers for creditors due to my extensive experience as one of them myself!

If you are being sued for a debt over $10,000, live in New Jersey, know you need to make payment arrangements with a creditor and are ready to take action, just click this link to schedule a call with me to discuss your case!

Want more information on how creditors use the courts to collect debt? Then download my free book, The Biggest Secrets Your Creditors Don't Want You to Know. Knowledge is power.

But if this debt is not the only one, and you are wondering whether you need a solution to a bigger problem, then download my free book, Am I In Too Deep? A Guide to Knowing When You Need to File Bankruptcy in New Jersey to determine if bankruptcy might be the right solution. You could also just give me a call and come in to discuss it further!

You can also take the quiz to the right to determine if bankruptcy is the right solution.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.