Author Topic: Best Out of State or Internet Banks for a Judgement Debtor in New York?  (Read 2733 times)

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NYCBroke

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Its a long hard story, but the short version is I have a few judgements and I am trying to get in better financial shape to deal with them. I have no money other then a weekly paycheck that I have been depositing into my wife (not a joint) checking account to live on.
I am expecting a large check (12K) that I am owed. I don't want to deposit this in her account like I do my paychecks because I don't want any issues raised about her "holding" my money. I plan to use that money to negotiate with creditors. So I need to open my own account. I haven't had a bank account in years. I have read on here that Etrade is recommended. I just don't feel safe with them because should a creditor get aggressive, E-trade is an easy target, along with Fidelity. There are not many brokerage accounts and they may shotgun levy to the big ones like Etrade.
Would I be better opening an account someplace out of state like Vermont or Florida?
Any recommendations ?

Bruno the JDB Killer

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One thing you may encounter with these banks is that they routinely deny people who have low credit scores or a lot of collections on their report, because they know what you're doing and don't want to participate in helping you hide money from creditors.

FlyingIFR listed a couple that may be helpful. I don't recall the names. If the check is in your name, why not just take it to the bank that issued it and cash it or have it converted to a series of teller checks made out to you that you can cash one at a time.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

NYCBroke

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Yes please, any help you can offer is appreciated.
Re cashing the check, I would love too! But I seriously doubt the bank would cash a 12K check to me, without having an account at that bank.
Trade may be easy to open, BUT a judgement creditor would not need to jump through any hopes to attach it since Etrade in my home state of NY (I am thinking)
So I assume the added insulation of an out of state bank would be better.

Admin0248

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Yes please, any help you can offer is appreciated.
Re cashing the check, I would love too! But I seriously doubt the bank would cash a 12K check to me, without having an account at that bank.
Trade may be easy to open, BUT a judgement creditor would not need to jump through any hopes to attach it since Etrade in my home state of NY (I am thinking)
So I assume the added insulation of an out of state bank would be better.

Please use paragraph breaks in your posts as it makes it easier for people to read.  If members chose not to read your post, you may not get the fullest advice that this board has to offer.


Clydesmom66

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So I assume the added insulation of an out of state bank would be better.

The problem with an out of state bank is getting them to agree to open the account.  After the last recession banks got wise to this maneuver to hide assets not to mention post 9/11 and terrorists attempting to hide their activity along with drug dealers and other criminals.

Now to open an account the bank is going to want proof that you reside in the state before opening the account.  Even if you did open the account it will only insulate you so far.  If any of the creditors hauls you in for a debtors exam you would have to disclose the asset and account.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Bruno the JDB Killer

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Yes please, any help you can offer is appreciated.
Re cashing the check, I would love too! But I seriously doubt the bank would cash a 12K check to me, without having an account at that bank.
Trade may be easy to open, BUT a judgement creditor would not need to jump through any hopes to attach it since Etrade in my home state of NY (I am thinking)
So I assume the added insulation of an out of state bank would be better.

If you can prove your ID to the issuing bank and the funds are on deposit, they have no legal basis not to give you the money. You don't need an account with them, because all they have to do is check the issuer's account and hand you the money. They could even call the guy who wrote the check. The series of teller's checks is better for both of you; it doesn't require they hand you all the money at once or make out an SAR on you. I did this with a check for a lot more than 12K and it worked perfectly.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

wombat_ma

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The series of teller's checks is better for both of you; it doesn't require they hand you all the money at once or make out an SAR on you. I did this with a check for a lot more than 12K and it worked perfectly.

A nice maneuver. Thanks for sharing with us, Bruno.
I am not an attorney. My posts here are not legal advice.

CleaningUp

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Even if an out-of-state bank agrees to open the account, it does not shield that depositor from an attachment.

In areas like New York City, where there are two other states nearby, the creditors will often issue blanket attachment requests in the neighboring states, too.

Going out-of-state decreases the possibility of attachment, but it is far from the silver bullet.

coltfan1972

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Just get an American Express Bluebird at Wal-Mart.   You can put up to 100K a year on it and it comes with checking.  You just pre-authorize the checks.   You can send checks in or deposit with a mobile app, and they post to the account in 7 days.

Several years I had one and other than no branches it was exactly like having a bank account, plus there is no fees and while it's a secured debit card, it comes with an AMEX.  You can reload at any Wal-Mart by taking cash and your card to a register and it's loaded instantly.

Also, you can do direct deposit from your employer with it. 
LexisNexis® Legal Newsroom- 05-17-2013 | 10:11 AM --

JONESBORO, Ark. - A federal judge in Arkansas on May 15 ruled that dismissal of a consumer's lawsuit against a debt collector is not proper because although the consumer posted messages on a website "in an odious manner," valid First Amendment concerns exist (Brandon Scroggin v. Credit Bureau of Jonesboro Inc., No. 12-0128, E.D. Ark.; 2013 U.S. Dist. Lexis 69070).

wombat_ma

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Just get an American Express Bluebird at Wal-Mart.   You can put up to 100K a year on it and it comes with checking.  You just pre-authorize the checks.   You can send checks in or deposit with a mobile app, and they post to the account in 7 days.

Several years I had one and other than no branches it was exactly like having a bank account, plus there is no fees and while it's a secured debit card, it comes with an AMEX.  You can reload at any Wal-Mart by taking cash and your card to a register and it's loaded instantly.

Also, you can do direct deposit from your employer with it.

But how does it protect from attachments? They do not report to CRA's?
I am not an attorney. My posts here are not legal advice.

NYCBroke

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I actually called a check cashing company today and was surprised to learn that they can cash a 12K check easy peasy. The guy there said he frequently cashes checked over 20K! He said lots of people from the "hood" are cashing personal injury settlements. They need 2 pieces of ID and have to verify the check with the bank, and the identity. Only downside is its 2.5%.

Someone mentioned an SAR. I wonder if thats an automatic with any checks over 10K. Doesn't matter, not doing anything illegal, but hate attention.

coltfan1972

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They do not report to CRA's?

No, not at all.   
LexisNexis® Legal Newsroom- 05-17-2013 | 10:11 AM --

JONESBORO, Ark. - A federal judge in Arkansas on May 15 ruled that dismissal of a consumer's lawsuit against a debt collector is not proper because although the consumer posted messages on a website "in an odious manner," valid First Amendment concerns exist (Brandon Scroggin v. Credit Bureau of Jonesboro Inc., No. 12-0128, E.D. Ark.; 2013 U.S. Dist. Lexis 69070).

NYCBroke

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The only bummer with the Amex account is that apparently you need to get every check "pre-authorized" before you can write them. Also the long holds on deposits. But I guess nothing is perfect

fisthardcheese

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I actually called a check cashing company today and was surprised to learn that they can cash a 12K check easy peasy. The guy there said he frequently cashes checked over 20K! He said lots of people from the "hood" are cashing personal injury settlements. They need 2 pieces of ID and have to verify the check with the bank, and the identity. Only downside is its 2.5%.

Someone mentioned an SAR. I wonder if thats an automatic with any checks over 10K. Doesn't matter, not doing anything illegal, but hate attention.

I don't see why you wouldn't just cut out the middle man charging you 2.5% and just go straight to the bank the check is drawn on to straight cash it?

The middle man is charging you $300 to call the bank the check is drawn on to confirm availability of funds, then will hand you the cash minus is $300.  Where you could just go to said bank, they will immediately confirm funds on the account held with them and give you the full $12k cash.
10 Arb Settlements (9 AAA, 1 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

wombat_ma

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No, not at all.

They still ask for the SSN, so with AMEX being the size it is, is there a chance of your account getting in some database your creditors might (legally or not gain access to)?

On a get level, some small out-of-state bank seems a safer bet to me.

A foreign-based internet bank seems even safer, but then there are those pesky FATCA requrement coupled with the lack of the FDIC protections.
I am not an attorney. My posts here are not legal advice.

 

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