Can the account for my payroll debit card be levied?

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Latest post Sat, Jun 30 2012 2:13 PM by adjuster jack. 2 replies.
  • Sat, Jun 30 2012 1:52 PM

    • TownDrunk
      Consumer
    • Not Ranked
    • Joined on Tue, Nov 13 2007
    • NY
    • Posts 3

    Can the account for my payroll debit card be levied?

    I just started a new job that requires direct deposit, as the company does not issue paper checks.  Because I am unable to have a bank account due to creditors' judgments, the only other option that my company has provided me is a payroll debit card.

    My problem is that my student loans are in default and the government is going to be taking the funds when the account is found (with other creditors waiting for their share).  I plan on filing bankruptcy as soon as I can get the money together, but I am worried that my money will not reach me because of my credit issues. 

    I am not worried so much that my paycheck will be garnished - that won't be a big deal.  But is the remaining balance of my check now fair game because the funds are transferred to an account (the prepaid debit card)?  If so, how will I get paid?

    If anyone can please advise me on what I can do, I would greatly appreciate it.  I live in New York City.  Thank you in advance.

  • Sat, Jun 30 2012 2:09 PM In reply to

    Re: Can the account for my payroll debit card be levied?

    TownDrunk:
    But is the remaining balance of my check now fair game because the funds are transferred to an account (the prepaid debit card)?

    I would think so.  Typically those cards are linked to some sort of account so it would not be surprising that they garnish your check then the account.  Once the funds are on the card they are just money.

    TownDrunk:
    If so, how will I get paid?

    You ARE getting paid.  Your company gives two options:  direct deposit or the card.  That you have judgements and creditors waiting to take it is your issue not the employers.  As long as they issue the required funds to you according to the law they have met their obligation to pay you.  If it gets taken after that this is your issue to deal with.

    TownDrunk:
    If anyone can please advise me on what I can do, I would greatly appreciate it.

    You need to be speaking with a BK attorney ASAP.  Keep in mind that the student loans are NOT dischargable in BK.  In the mean time the law does allow you to withdraw ALL the funds off the card in cash on payday with no fee.  I would do that and pay bills by money order until you can get the BK filed.  Otherwise you are going to buy groceries or pay a bill one day to find out that a creditor has seized the funds on the card.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Sat, Jun 30 2012 2:13 PM In reply to

    Re: Can the account for my payroll debit card be levied?

    I agree.

    Your best option appears to be to take out all the cash as soon as it hits the card and hope your judgment creditors aren't able to time it more precisely than you can.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
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