Bank Question

[Elephant]

Does anyone know anything about Delaware bank accounts? Are they really safe from a legal judgment?

[Ed Highlight]

I think you have a legal question, not a banking question. Banking (Federal) regulations are fairly consistent from state to state. I do know that Corporate Law is different in Delaware and that's why many companies incorporate or register their corporations in Delaware...so you may either be more specific (if you can) about your question or maybe ask a lawyer....hope this helps, I didn't see anybody else helping.

[guest043013-2]

US Constitution: Article Iv, Section 1: Full Faith and Credit

Full faith and credit chall be given each State to the public acts, records, and judicial proceedings of every other state.

Basically, a judgment against you in one state can be collected from you against property in a different state.

Civics class 101 in junior high. (And Mrs. Booker thought I wasn't paying attention 50 years ago.)

[Elephant]

Originally Posted by Ed Highlight

so you may either be more specific (if you can) about your question or maybe ask a lawyer....hope this helps, I didn't see anybody else helping.

A family member recently got a default judgment against her for a unsecured line of credit she defaulted on about 18 months ago after losing her job. I was trying to help her find a place to bank without fear of a bank garnishment. Wages are safe in Texas, but not bank accounts. Btw, she does not own a home.

http://www.ehow.com/list_6608496_del...ment-laws.html

Delaware law prohibits bank account garnishment, which consists of a court ordering a judgment debtor's bank to pay the judgment creditor from money in the judgment debtor's bank account.

Originally Posted by tigercat

Basically, a judgment against you in one state can be collected from you against property in a different state.

Wouldn't a judgment have to be "domesticated" first... and if Delaware doesn't allow bank garnishment......

I'm sure its not that easy. Lol

[guest043013-2]

So, in Delaware, a judgment for $100,000 against a defendant with $1,000,000 in a bank account is useless? Seems a bit strange, but if you say so.

[southerngentleman]

Garnishment has costs....cost from the creditor/judgment holder in filing the garnishment action....and the costs that are taxed on the creditor/judgment holder from the financial institution (garnishee) that is required to "answer" the garnishment attempt. In other words, unless there is a significant amount of money at stake, and the creditor/judgment holder knows unequivocally where your bank account is, garnishment rarely happens. Besides, if you have only a small amount in your account, although that small amount is meaningful to you, there may be nothing for the creditor/judgment holder after the garnishee recovers its legal expenses. Just be thankful you live in Texas. It is a very debtor friendly state.

By the way, assuming your friend is now employed, it is not unusual for judgments to be settled today for 20 cents on the dollar. You just have to ask. And, yes, there are a lot of hoops to jump through to obtain a judgment, and to render that judgment enforceable, whether it is a domestic judgment, or a foreign judgment.

[JohnnyFarangly]

If you are in Texas you dont need to worry

[littlejoe]

She has a judgement against her, so presumably it's a valid debt. She has cash in the bank. Why wouldn't she want to settle the debt?