When a credit card company attempts to collect money owed to it, one of the options available is a bank levy or a bank garnishment. Certain procedures must be followed in order for the credit card company to gain access to money in an account in a Florida bank.
Preliminary Steps
Before a credit card company can begin proceedings to access a Florida bank account, the company first must go to a hearing and obtain a judgment against the debtor. To do this, the credit card company files a petition with the court to discuss the case. The company also notifies the debtor of the action taken, giving the debtor a chance to preset any evidence disputing the claim.
Garnishment
If the court finds in favor of the credit card company, it may allow the company to garnish a Florida bank account. Garnishment allows the credit card company to take a certain amount of money each week from a debtor's account. Under no conditions, however, can the credit card company take more than 25 percent of the debtor's weekly salary. In addition, under Florida law, if the person is a head of household, the bank account is exempt from garnishment. Legally, a head of household is defined as a person supporting another person or persons, including a spouse or a parent or child.
Exemptions
Other exemptions from having assets seized from Florida bank accounts include Social Security benefits, as well as any veterans' benefits a debtor collects. In addition, the credit card companies cannot take retirement accounts and pension income, nor any life insurance annuity, provided the account holder is a permanent resident of the state of Florida. The state of Florida has a 20-year statute of limitations as the length of time from the passage of the civil judgment to when it expires.
Taxes
Although credit card companies cannot seize bank accounts, if the account holder owes state or federal back taxes, the entire amount of taxes owed can be removed from the bank account. In addition to seizing the bank accounts, the tax agency has the authority to enforce wage garnishment, as well. In the event back taxes are owed, an individual should contact the tax agency and arrange for a payment plan. Doing this reduces the likelihood of further financial action being taken against the Florida account holder.
0 comments:
Post a Comment