Discover Bank has acquired a default judgment against me via a North Carolina law firm. I’ve attempted to work out a payment plan with the law firm that I can afford, but the amount that they are requesting is more than I can pay. We are considering bankruptcy. My question is this: Can a consumer creditor, such as Discover Bank and their NC attorneys, seize and/or take money from my bank account in NC? I know they can’t garnish my wages, …and I’ve completed my motion for exemptions form that I was served. My fear is that they will take money from our bank account on my payday (I’m a teacher and get paid once a month) and then my family will be unable to pay our bills such as electricity, car payment, house payments, etc. I know bank levies can go into place for tax bills and such, but can this by done for outstanding credit card debt for which a judgment has been issued?
The procedure for enforcing a money judgment is called “execution.” In an execution the sheriff is required to locate any non-exempt assets the debtor has and seize them to sell or apply toward the money owed. A bank account is an asset and and if the money does not qualify as an exemption, it is subject to seizure. Whether or not that will actually happen depends on how aggressive the creditor is.
If you cannot pay and are unlikely to be able to pay for the foreseeable future, you should consider bankruptcy since it would probably eliminate the debt for good.