Creditors have many tools to collect from debtors who live in South Carolina. They can file judgment liens against property, requiring that the debt be paid off before a home can be sold. They may also be able to attach bank accounts, including joint accounts, forcing the banks to turn over the balance in the account to pay toward the debt.
Attaching Joint Bank Accounts
Both people named on a joint account own all of the money in the account, and with a court order, that money may be taken to satisfy a debt from either person. For example, if a husband and wife have a joint checking account and the wife owes money to a creditor, the creditor can ask the court for permission to attach the joint checking account, even if the husband is the only person putting money into the account.
Wage Garnishment
While single and joint accounts are fair game for attachment, South Carolina code prohibits the garnishment of a person's wages to collect on a consumer debt. This includes collection of a consumer lease or loan, as well as consumer rental-purchase agreements from rent-to-own outlets. This applies to residents of South Carolina regardless of where the transaction originated.
Income from Exempt Sources
Income from child support or alimony is generally exempt from garnishment or attachment, as are Supplemental Security Income payments. If a person has deposited money into a joint account from these sources, that money is exempt from garnishment. If a creditor attaches the account anyway, the account owner can petition the court to force the creditor to return money from these sources.
Prevention
If two people own a joint account and one of them is being sued for non-payment of a legitimate bill, the person who does not owe the money should start a separate account as soon as possible. He should also have all direct deposits sent to this new account immediately. Be careful in moving assets that legitimately belong to the other person to the new account, as a court may view this as fraud, and order the money turned over to the creditor with the judgment.
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