Bank account garnished for debt. Questions on what to do.
Date: Wed, 10/10/2012 - 18:44
Bank account garnished for debt. Questions on what to do.
In 2007, when I was 18, I received a credit card with the checking account I opened with Bank of America. Naturally being a dumb 18 year old I soon had it maxed out at $600 and had it overdrawn by $25, for a total debt of $625. I was able to make a payment or two at the start but soon lost my job and was unable to do so. After a while this debt was bought by Arrow Financial Services.
Over the years, my foolish immature self simply ignored the debt. About a year or so ago I had a court summons for the debt. I didn't understand the process and didn't know what to do, so I didn't show up which resulted in a default judgement. Back in August, I received what I now know as a notice of levy from the St. Louis sherrif's office informing that I was being garnished for the debt. I didn't know exactly what this was and let it go. This was at the behest of Bermin and Rabin attorneys office.
Yesterday I had a balance hold placed on my account at BoA. Today, BoA charged me a legal fee of $100 and the remaining $695 I had in that account was also charged. I called Bermin and Rabin today and apparently my debt has grown to $2,100. By recieving a default judgement, apparently they were awarded a 14% interest fee which has accumulated over the years. I inform them I cannot afford $2100 and they propose a $1600 lumpsum settlement.
I inquired as to why they transfered the $695 from my account if they would accept a $1600 lumpsum payment. The rep explained that this money is in a "escrow" so to speak and that it would be awarded to them by the court at the end of a 60 day garnishment period or something like that. She also said that if I were to pay the lumpsum of $1600 that the hold placed on my BoA account would be lifted and that the $695 in my account would be made available to me.
My question is, is she telling me the truth in regards to the status of my bank account and my funds? How do I know I will have access to my funds if I do make the agreed upon payment of $1600? Thanks in advance for any advice. I know my situation was worsened by my inaction and regret it sorely. I would just like to settle this as quickly as possible.
Over the years, my foolish immature self simply ignored the debt. About a year or so ago I had a court summons for the debt. I didn't understand the process and didn't know what to do, so I didn't show up which resulted in a default judgement. Back in August, I received what I now know as a notice of levy from the St. Louis sherrif's office informing that I was being garnished for the debt. I didn't know exactly what this was and let it go. This was at the behest of Bermin and Rabin attorneys office.
Yesterday I had a balance hold placed on my account at BoA. Today, BoA charged me a legal fee of $100 and the remaining $695 I had in that account was also charged. I called Bermin and Rabin today and apparently my debt has grown to $2,100. By recieving a default judgement, apparently they were awarded a 14% interest fee which has accumulated over the years. I inform them I cannot afford $2100 and they propose a $1600 lumpsum settlement.
I inquired as to why they transfered the $695 from my account if they would accept a $1600 lumpsum payment. The rep explained that this money is in a "escrow" so to speak and that it would be awarded to them by the court at the end of a 60 day garnishment period or something like that. She also said that if I were to pay the lumpsum of $1600 that the hold placed on my BoA account would be lifted and that the $695 in my account would be made available to me.
My question is, is she telling me the truth in regards to the status of my bank account and my funds? How do I know I will have access to my funds if I do make the agreed upon payment of $1600? Thanks in advance for any advice. I know my situation was worsened by my inaction and regret it sorely. I would just like to settle this as quickly as possible.
From the looks of it, there is a levy on your bank account and b
From the looks of it, there is a levy on your bank account and because the amount in there is not enough to satisfy the debt, it has been frozen as collateral in case they fail to get anything at all out of you. The only way to unfreeze the funds is to reach a settlement agreement with them.
