What Type of Bank Account to Open to Avoid Garnishment?
A garnishment on your bank account can be quite upsetting as it means that you have no control over the money in your account and you may not be able to pay your bills. It also means that a creditor will be able to take money from your account regardless of whether it is protected or not, and your bank will let them do this because the law says that a bank must always comply with a creditor claim or they will be liable. However, there are ways in which you can protect your assets from garnishment.
There are a few things that you can do in order to avoid garnishment from happening to you.
- Open up an exempt bank account. This is a bank account which you can open if you have exempt income such as disability or social security.
- Open up an account with a bank in a different state. This will then slow down any creditors who are after you. However it might not stop them totally. If you do this, then try not to write out any checks on this account because they are easy to trace.
- Open an offshore bank account. If you open an offshore bank account, then any creditors in the US will be unable to touch your money. These types of accounts are very easy to open and they work just the same as a normal bank account; however, it will mean that you will have to do most of your banking on the internet. Contrary to popular belief, an offshore account can be opened up by just about anybody and it is totally legal and untouchable by US creditors!
Of course, you can always find other ways to avoid bank account garnishment.
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