Nfcu cloc and garnishment

[Jccflat]

If someone has a charge off it can go to collections than They can garnish your bank account from What I understand
My Question is if it gets to the garnishment level and there is no money in the checking account and There’s a overdraft like cloc can it overdraft from the checking line of credit even it’s still not that person money ?

[M_Smart007]

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@Jccflat wrote:
If someone has a charge off it can go to collections than They can garnish your bank account from What I understand
My Question is if it gets to the garnishment level and there is no money in the checking account and There’s a overdraft like cloc can it overdraft from the checking line of credit even it’s still not that person money ?

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I don't believe so, I think they can only take what is in your account or garnish your wages/paycheck.

[SouthJamaica]

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@Jccflat wrote:
If someone has a charge off it can go to collections than They can garnish your bank account from What I understand
My Question is if it gets to the garnishment level and there is no money in the checking account and There’s a overdraft like cloc can it overdraft from the checking line of credit even it’s still not that person money ?

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No, they can't.

[Jccflat]

It’s a family member he was worried and was going to call to cancel the checking line of credit

[Remedios]

What you're talking about is bank account levy. "The family member" needs to be aware that's it's not a one time deal. If they have a judgement, they can come back many times. Certain types of income such as disability payments are exempt from it

If they already made an attempt to seize the funds, it's best they forget that account exists. 

If they are employed, and creditor is aware of the employment, garnishments are unavoidable. The amount they can garnish is legally mandated, they have to renew the order periodically, but it will continue till it's paid off. 

Your "family member" really does not want either, or even worse, both. 

Contact the lender and start negotiating on how to pay this, or have a consult with an attorney who can advise you on how to proceed. 

Many attorneys provide a free consultation, so that's a good place to start. 

Losing CLOC is the least of their problems because they wont be able to use those those funds. If there is no checking, it cannot be repaid, so hopefully they have a back up account. 

[Jccflat]

He’s aware of it
How do the know where is your bank acct ?

[FinStar]

Lenders have a variety of methods to obtain such information, anything from skip tracing to alternate reporting agencies to serve any type of court order or levy.