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#1810269 - 05/02/13 04:41 PM Garnishment/Levy on Line of Credit
Banker57 Offline
Gold Star
Joined: Jul 2010
Posts: 439
Minnesota
For a garnishment or Levy order if there are no funds in the DDA or Sav accounts, or funds less than the order amount, can the funds be pulled from the customers Line of Credit?

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#1810507 - 05/02/13 09:13 PM Re: Garnishment/Levy on Line of Credit Banker57
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,418
Galveston, TX
No - garnishments and levies only reach assets - they do not create additional liabilities.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1810630 - 05/03/13 01:41 PM Re: Garnishment/Levy on Line of Credit Banker57
Banker57 Offline
Gold Star
Joined: Jul 2010
Posts: 439
Minnesota
Thank you, that is what we thought. How does one handle a situation where the Levy was processed but one account was missed when there was an additional balance that should have been taken? I am assuming the FI needs to provide the funds that would have originally been taken. And the FI takes the loss. Am I correct?

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#1810668 - 05/03/13 02:30 PM Re: Garnishment/Levy on Line of Credit Banker57
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,418
Galveston, TX
It might depend on the circumstances, but normally, if you want to close the liability window that would be the appropriate action after contacting the levying authority to see if the entire debt had yet to be satisfied. Might be something to run through legal counsel depending on the amount and whether the governing statute provides for additional damages for failing to properly honor the order.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1814414 - 05/15/13 03:42 PM Re: Garnishment/Levy on Line of Credit Banker57
Banker57 Offline
Gold Star
Joined: Jul 2010
Posts: 439
Minnesota
Additional scenario: We have received a Garnishments Summons but not the Writ of execution. At 180 days am I correct to release the held funds back to the debtor?

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#1897675 - 02/16/14 03:17 AM Re: Garnishment/Levy on Line of Credit Banker57
Banker Gal Offline
Member
Banker Gal
Joined: Oct 2003
Posts: 74
Yes, once the time limitations are up you can release funds back to the debtor. I have seen this many times when the funds being held are not worth the time and effort for the attorney to pursue.

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