Many states allow people who win lawsuits against others to forcibly collect money from a person's bank accounts. But if a debtor will not pay the judgement against him, he likely will not disclose where he banks. Banks also do not disclose the existence of bank accounts because privacy laws prevent them from giving out that information.
How to Locate Bank Accounts to Collect a Judgement
Search public records. If your debtor has ever been divorced, declared bankruptcy, bought a house, registered a company, paid property taxes, voted, filed a lawsuit or been sued, there is probably a public record referencing that fact at a nearby courthouse. If public records indicate your debtor has a mortgage, he likely has bank account that allows him to pay his mortgage via check. If your debtor has ever been sued or been divorced, the person on the other end of the suit of ex-spouse might be privy to information about your debtor's finances and might have an axe to grind. Contacting these people can generate leads, but be wary. The Fair Debt Collection Practices Act does offer debtors some protection against disclosure of their debts.
Subpoena Power
If you are owed a judgement, you have already been to court. You may already have a lawyer who can issue civil subpoenas for information. Your lawyer can subpoena banks for information. Your lawyer may also be able to haul your debtor into court for a "judgment debtor hearing," in which the debtor can be questioned on the existence of bank accounts and other assets.
Search Your Own Records
If the nature of the dispute with your judgement debtor is a business relationship, you likely have more information than you know. For example, if your debtor has written you a check, then you have their bank account information. If you have written a check to the debtor, the back of the canceled check will also contain information on the bank in which the check was deposited.
Staying Legal
Collecting debts can be tricky and is full of legal pitfalls. The Fair Debt Collection Practices Act governs the actions debt collectors can take in collecting information and debts of a debtor. Making false statements while pursuing a debt can be a violation of the act. Consult a lawyer if you have questions. State laws also vary, with some requiring a specific bank account number before allowing a bank levy. Some cities and states have government officials that aid in the enforcement of judgements. Others rely on lawyers to do most of the work. Some states may make it difficult or impossible to collect from a joint bank account. Fees for subpoenas and the filing of levies may also apply. Those fees, and your ability to tack them on to the judgement will vary from state to state.
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