Legal Question in Credit and Debt Law in Pennsylvania

I received a Writ of execution today for a debt that I did not pay. They froze my business bank account at S and T bank. They debt is against my business and me. That is what is listed on the Writ. My business is an LLC. Can I open another bank account at another bank under my business name? The Writ only specifies my account at S and T bank. Or will this Writ cover any banks I try to open an account with? I need some time to negotiate with the creditor but I have to run my business also. Thanks.

Asked on 4/03/13, 10:01 am

1 Answer from Attorneys

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Of course the judgment creditor froze your account. You ignored the judgment and did not seek out legal advice to learn that if you kept less than $300 in any one bank account, it would be exempt from execution/levy by the sheriff. You also did not take steps to protect yourself.

Since the judgment is against you AND your business, you opening another bank account in just your name or in just the business name will not work. Businesses do not get the exemptions per state law, only individuals do and if your business opens an account that will be at risk. Because the judgment is against you, any future accounts will be at risk unless you keep no more than $300 in your personal account.

If I were you, I would bank at a purely on-line or out of state bank or go on a cash only basis. I would stop any direct deposits immediately into the frozen bank account and I would not make any more deposits into that account.

The writ covers any bank accounts that the creditor discovers. While there is only an S&T account now, you do not know if the writ was sent to any other banks and returned unsatisfied because you do not bank there. Nor will anything stop your creditor from learning of a new bank account and trying again in the near future. Execution on personal property, like bank accounts, can occur any time for 20 years from the date of entry of the judgment.

If I were you, I would either try to work out an arrangement to prevent future levies, or find a way to prevent future levies while building up funds to settle the debt or else discharge it in bankruptcy.

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4/03/13, 2:31 pm

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