Legal Question in Credit and Debt Law in California

Recently a Law Firm representing/owning a old credit card tried to serve me with a 'writ of execution' to an old residence I lived at two years ago. I have been receiving all other court documents to my current address. Anyway, the debt is for 12K and I am willing to make payments on this debt. In the past I wasn't in the financial situation to do so. My business was just breaking even. Ok so here is the question about property, accounts, etc... I don't own a house or property, I have an old 2002 truck which is used for the business, I have a bank account under the business name referencing the business's Tax ID, not my SS#, and I have an a/c under my personal information. Since I have control over when and if I pay myself, they cant garnish my bank a/c if nothing is in there can they? Can they touch my business bank a/c? What about my truck that is paid for? Should I put the truck in someone else's name? Any advice would be greatly appreciated.

Asked on 1/20/11, 11:56 am

1 Answer from Attorneys

Tony Carballo Carballo Law Offices

I doubt that anyone is interested in your old truck and you could protect it if the creditor goes after it. Money could be taken from your business bank account even if you are using a tax identification number instead of a social security although it might be more difficult for the creditor to find it. The money is yours even if it is a business bank account unless you are a corporation or LLC. The creditor can drag you to court for an examination of debtor under oath and you will have to tell the creditor all you own and all bank accounts with money that you own. If you have a business that takes payments from customers or clients the creditor can have someone sit in your business and collect the money being paid to you for services or merchandise. This is called a till tap. The creditor can file an abstract of judgment in the County Recorders' Office which is a lien on any property you buy in the future. You can contact the creditor and try to work out a payment plan or if you can get your hands on a substantial amount of money, like $5,000 you might be able to settle it for that amount. You might consider bankruptcy depending on your total debt and other debt issues.

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Answered on 1/25/11, 1:17 pm

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