Author Topic: Can a Brokerage account be seized?  (Read 1267 times)

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tutster

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Can a Brokerage account be seized?
« on: March 01, 2017 11:42:16 PM »

Hi, I need some advice. I've had a judgement against me for some time. I have an out of state brokerage account with some money, basically only enough for me to be able to trade and make a living. you have to have a few thousand dollars in your account in order to be allowed to trade. without that money, I wouldn't be allowed to trade and hence be able to survive.

can the lawyers who have my judgement seize my brokerage account with a writ of execution? also my brokerage account is out of state, would that make a difference?
or am I exempt in some way because that money HAS to be in there in order for me to survive? I live in California.

I see through the court documents that they recently obtained a writ of execution.

Thanks



Bruno the JDB Killer

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Re: Can a Brokerage account be seized?
« Reply #1 on: March 02, 2017 12:48:03 PM »
can the lawyers who have my judgement seize my brokerage account with a writ of execution?


Yes.



 am I exempt in some way because that money HAS to be in there in order for me to survive? I live in California.



That's a joke, right?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

bonedaddy77

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Re: Can a Brokerage account be seized?
« Reply #2 on: March 02, 2017 02:15:42 PM »
A few thousand? If you are day trading then you need at least $25K in the account. At least it's out of state and takes little more work to get judgement domesticated.

Clydesmom66

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Re: Can a Brokerage account be seized?
« Reply #3 on: March 02, 2017 03:06:37 PM »
or am I exempt in some way because that money HAS to be in there in order for me to survive? I live in California.

You are joking right?  Unless your income puts you below the established Federal Poverty guidelines you are not exempt from garnishment or that brokerage account being seized.  The creditor and the courts do not care if you can "survive" after they seize the money you owe.

I see through the court documents that they recently obtained a writ of execution.

I would be prepared that they are going to haul you in for a debtor's exam. 
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.

11181986

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Re: Can a Brokerage account be seized?
« Reply #4 on: March 02, 2017 03:58:27 PM »
A few thousand? If you are day trading then you need at least $25K in the account. At least it's out of state and takes little more work to get judgement domesticated.

Thank you for the irrelevant interjection of the account minimum required for day trading. Who says he can't be swing trading?

Aside from that - can they seize the account? Yes they can.

Will they be able to find the account without you telling them? Probably not.

Bruno the JDB Killer

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Re: Can a Brokerage account be seized?
« Reply #5 on: March 02, 2017 06:19:11 PM »
It might be on his credit report, depending on how they allow him to trade. A writ of execution usually means they found something and are about to take it.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

11181986

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Re: Can a Brokerage account be seized?
« Reply #6 on: March 02, 2017 06:36:43 PM »
hard to speculate without seeing the writ.  writs come up empty all the time. Especially ones that are sent out en masse to blanket major banks or other financial institutions.

tutster

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Re: Can a Brokerage account be seized?
« Reply #7 on: March 03, 2017 08:43:17 AM »
Quote

 am I exempt in some way because that money HAS to be in there in order for me to survive? I live in California.



That's a joke, right?

not at all, there's tons of exemptions so that you're not left in the street. like house exemptions, car exemptions, an $8000 "tools of the trade" exemption. I mean if they take that, I can't work, sounds like a tool of the trade to me.
« Last Edit: March 03, 2017 09:21:58 AM by tutster »

tutster

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Re: Can a Brokerage account be seized?
« Reply #8 on: March 03, 2017 08:51:13 AM »
A few thousand? If you are day trading then you need at least $25K in the account. At least it's out of state and takes little more work to get judgement domesticated.

no, you don't need $25K to daytrade. that's only if you are trading stocks. I am not trading stocks, I'm trading futures. but knowing it would take them more time since it's out of state helps a lot.thanks

tutster

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Re: Can a Brokerage account be seized?
« Reply #9 on: March 03, 2017 08:59:58 AM »
You are joking right?  Unless your income puts you below the established Federal Poverty guidelines you are not exempt from garnishment or that brokerage account being seized.  The creditor and the courts do not care if you can "survive" after they seize the money you owe.

I am below the federal poverty guidelines(technically). they do seem to have TONS of exemptions so they do care to an extent.


I would be prepared that they are going to haul you in for a debtor's exam.


I am below the federal poverty guidelines(technically). they do seem to have TONS of exemptions so they do care to an extent.

I would file for bankrupcty immediately if that happened.
« Last Edit: March 03, 2017 09:21:04 AM by tutster »

tutster

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Re: Can a Brokerage account be seized?
« Reply #10 on: March 03, 2017 09:18:57 AM »
Thank you for the irrelevant interjection of the account minimum required for day trading. Who says he can't be swing trading?

Aside from that - can they seize the account? Yes they can.

Will they be able to find the account without you telling them? Probably not.

yea swing trading is one way to get around the 25k rule. you can also daytrade futures which is how I'm circumventing the rule.

Good to hear that my account would be hard to find without me telling them. I haven't ever told them anything.

tutster

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Re: Can a Brokerage account be seized?
« Reply #11 on: March 03, 2017 09:42:36 AM »
It might be on his credit report, depending on how they allow him to trade. A writ of execution usually means they found something and are about to take it.

you are correct. a sheriff came to my work and served garnishment papers to someone. I quit immediately when I found out and told them I was gonna go file for bankruptcy. not a big deal really, I wasn't making much just a few hundred bucks here and there.

I checked my credit report and nothing's on there so I don't think they found it that way. my debt from the creditcard/collection agency isn't even on there anymore it's been so long. I know after several years it's taken off your credit report.

tutster

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Re: Can a Brokerage account be seized?
« Reply #12 on: March 03, 2017 10:20:09 AM »
hard to speculate without seeing the writ.  writs come up empty all the time. Especially ones that are sent out en masse to blanket major banks or other financial institutions.

yea this is my second writ of execution. the other was a little over a year and a half ago and nothing ever came of it, it just expired. maybe they tried to get to my bank account and there was no money in it, who knows.  this is the 3rd law firm I believe which is trying to collect from me, my debt has probably been sold at a discount 3 times by now.

I appreciate all the help from you guys. really got information here that I couldn't find anywhere else on the internet. the only brokerage account seizure I had found which occurred with my broker was one done by the Government. now that I know I am withdrawing my money as we speak, type ;) well most of it.

 

Bruno the JDB Killer

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Re: Can a Brokerage account be seized?
« Reply #13 on: March 03, 2017 01:47:44 PM »
You should have done the math before you quit. There is an amount below which they get nothing.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

cabot_lane

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Re: Can a Brokerage account be seized?
« Reply #14 on: March 03, 2017 03:44:57 PM »
I quit immediately when I found out and told them I was gonna go file for bankruptcy. not a big deal really.

I am below the federal poverty guidelines(technically).

yea this is my second writ of execution. the other was a little over a year and a half ago and nothing ever came of it, it just expired. maybe they tried to get to my bank account and there was no money in it.

It appears that you have this all well planned out.  You've covered all your bases...quitting your job, no money in the bank, below the federal poverty guidelines, and at the drop of a hat ready to file BK as no big deal.  Congratulations  :drinking: