0
Can a creditor seize your checking account on a secure loan if the property has been stolen?
Wiki User
∙ 14y ago
There are situations where this is possible. The one that stands out is this:
Your car was stolen. You stopped making payments on it thinking, "I don't have it anymore, so I don't need to pay for it." You turned in the report to the insurance company and they paid out, but you did not pay the lender off. Or, you did not have insurance or failed to turn in the claim, so received no money. In the mean time, the lender puts the vehicle up for repossession because you have defaulted. When you are contacted you tell the lender or repo agency the car was stolen, and continue thinking it is not your problem. The lender does not really want the car, they want the money you contracted to pay, so they sue you. You continue to refuse to pay, so the lender attaches your checking account.
Yes, they can do this.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is the definition of deed to secure debt?
This sounds like another way of saying mortgage--the conveyance of property by a debtor to a creditor which, if the debt is not paid, can be kept by the creditor.
If an account is charged off but payments are current on the account can a lender repossess collateral?
If payments are current it would not be advantageous for a creditor to charge off an account nor in some cases legal. If there are arrearages on the account that is a different issue, as the account would be considered in default and property that was used to secure the loan could be seized.
How can you keep your online checking account secure?
To keep your online checking account secure, use strong, unique passwords and enable two-factor authentication. Regularly monitor your account for any suspicious activity and keep your devices and software updated. Additionally, be cautious about clicking on links or providing personal information online and ensure you are logging into your account from a secure and trusted network.
What exactly is a checking account?
A checking account is a convenient, secure place where you can deposit, store, and spend your money. It is intended for the use of depositing and withdrawing funds through a check, a debit card or other various sources.
What does collateral mean in personal finance?
Security for a loan so the loan is secured by property, vs unsecured-more risky for creditor. Whenever, any borrower intends to raise a loan, or financial advances, either from the Creditor, or from the Banks, any prudent Creditor would like to secure the interest. It is, therefore, that the Creditor would ask to mortgage the property in exchange of financial advances being granted, or sanctioned. The Borrower, therefore, offers the property by way of "equitable mortgage" so as to secure the interest of the creditor. The very process is called the mortgage. And the property that is being mortgage is called the "collateral security". In case, the Borrower does not repay the debt due and payable, including cost, charges and interest, the secured creditor would be legally entitled to auction the property or sale away and recover the dues. The public sector banks recover the dues by auctioning the property that is equitably mortgaged.
Is A writ of attachment is a court order to seize a debtor's property before the entry of a final judgment in a creditor's?
Yes, a writ of attachment is a court order that allows a creditor to seize a debtor's property before a final judgment is entered. It is a legal remedy used to secure the creditor's claim and prevent the debtor from disposing of their assets to avoid payment.
What might be the consequences for non-payment of credit card debt?
Credit cards are considered unsecured debt. Unsecured debt simply means that specific property has not been used as collateral to "secure" the debt. A creditor can use standard collection methods such as phone and mail contact, as long as they do not violate the FDCPA. The creditor also has the option of filing a lawsuit against the debtor. If a creditor wins a suit (and they always do) a judgment will be entered against the debtor. There are several ways a judgment can be enforced, the preferred method is through wage garnishment, followed by bank account levy. Other options are the seizure and sale of non exempt property belonging to the debtor or a lien against real property (in very rare instances a forced sale of a home can be done). In the majority of states jointly owned property is subject to creditor attachment. In other words, a bank account jointly held can generally be levied by a creditor judgment.
If your coworker is able to access your 401k account to check your balance which secure system is property is being violated?
confidentiality
Can a creditor take possession of your home or vehicle?
If the creditor is attempting to make a recovery on a secured loan and the property is the security of that loan, then yes, definately; however, to do so the creditor must seek a judgment to secure the repossession or foreclosure. It is possible in some states that a court can order the liquidation of property to cover payment of debts under judgment. If a creditor is attempting to take possession of your property and there has been no ajudication (court proceedings), they may be attempting to act in an illegal manner. Just be very certain that no judgment has been entered before you try to prevent the recovery. Most creditors are willing to work with debtors in the resolution of loans. Contact the creditor and find out the current status of the property.
In North Carolina can a credit card company place a levy on the debtor's checking account for unsecured debt?
Yes, if the creditor wins files a lawsuit and wins a judgment the judgment can be executed as a bank levy against checking or credit accounts held by the debtor even if the accounts are joint. Unsecured debt means that specific property has not been used as collateral to secure the debt owed. The judgment creditor generally has several options which can be used to recover monies owed, such as wage garnishment, bank account levy, seizure and liquidation of non exempt property and liens against real property. States establish laws that designate the type and amount of real and personal property that can be protected from creditor attachment. In most cases the exemptions allowed in bankruptcy are the same as those used to protect property against judgment enforcement. Federal non bankruptcy exemptions (such as exempting SS benefits) can also be used depending upon the individual's circumstances. The above answer doesn't make total sense, North Carolina is a no garnishment state other than tax, government, state hospital (sometimes) and child support. You may want to consult and attorney if you live in North Carolina and double check the above posters answer. There rules vary from state to state. North Carolina is also a joint tenant state which means joint accounts are protected if one of the individuals on the property or account isn't owner of the debt owed.
What other company will allow someone open a checking account other than a Bank?
Credit unions are another type of financial institution that allow individuals to open a checking account. They are member-owned and often offer competitive rates and fewer fees compared to traditional banks. Online banks and fintech companies also provide options for opening a checking account without the need for a physical branch.
What course of action can I take if the Creditor has misapplied my payments and placed my account in a charge off status without notifying me of same?
First of all, I would imagine the creditor is obligated to notify me prior to placing my account in charge-status. In addition, once I notifed the creditor of the error I would expect for the creditor to produce any information (billing statements, letters, payment ledgers, etc) reflecting the history of the account. Lastly, if I am able to to produce billing statements from previous years reflecting the same balance as the amount claimed to be owed via the creditor, this should demonstrate there is some issue with their accounting department and/or process. If I am able to demonstrate and produce returned checks that clearly deduct and/or reduce the balance owed, the creditor should be required to track the payments and rectify the problem. Hopefully, the information relating to the account has/will not adversely impact my ability to secure loans at a reduced rate and/or secure any additional credit. If so, there could feasibly be a claim for defamation of character relating to my credit profile.
