Can Credit Cards Seize Your Joint Bank Account?

When you accumulate a large amount of credit card debt, it can be very difficult to keep up with the interest payments, let alone pay off the balances you owe. Many consumers find themselves in a situation where credit card default is the only answer. When this happens, the credit card company could potentially try to take money out of a joint bank account that your name is on.

Collection Process

When you owe money to a credit card company, the company will begin the collections process by making extra phone calls and sending extra statements. The company could handle this internally or it could turn your account over to a collection agency. The collection agency or collections department of the credit card company will continue to try to collect the balance from you for some time. If you still do not pay the credit card bill, the company will take further action to collect.

Levying Bank Account

The credit card company will then file a lawsuit against you in civil court. Unless you can prove that you did not incur the debt, the court will award a judgment in the credit card company's favor. The credit card company can then use this judgment to levy your bank account, which means it can take money out of your account. The credit card company then has the right to take any amount out of the account.

Joint Bank Accounts

If you have a joint bank account with another individual, the money in the account could be susceptible to levy by your creditors. Even though the name of another person is on the account, creditors can still take money out of the account as long as you are on it. It does not matter if the other person on the account put all of the money into it. Creditors can still take the money regardless of who earned it.

Protecting the Money

If you are in the middle of a legal battle with a credit card company about debt, you may want to notify the other person that has a joint account with you. This way, the other person could make arrangements to take the money out of the account and put it in an individual account without your name on it. This way, you will at least avoid hurting your friend or family member financially.