Garnishment of Bonds / Safety Deposit Box?

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Latest post 06-03-2006 11:27 AM by unabella. 3 replies.
  • 06-02-2006 11:27 AM

    Garnishment of Bonds / Safety Deposit Box?

    I have a judgment against me and bankruptcy isn't feasible. I also can't pay the judgment right now. I DO have some government bonds in a safe deposit box in my name and my daughter's name.
    My question is twofold
    (1) Can they find out about the bonds and the safe deposit box and if so, can they garnish the contents of the Safe Deposit box and the government bonds? They are for $500 each but are not mature so I guess they are only worth $250 each -- I have three. The judgment is for $12,500.
  • 06-02-2006 2:26 PM In reply to

    re: Garnishment of Bonds / Safety Deposit Box?

    The judgment creditor has the right to conduct an asset hearing.

    This hearing will be conducted under oath and you are required to answer truthfully. They will ask about all your assets. They will also ask about any assets previously transferred to any third party.

    These bonds may or may not be assets exempt from attachment in your state. If not exempt, the court could easily order you to turnover the bonds to the creditor.

    I don't what the rules are in your state for "fradulent conveyance". In most states, any transfer of an asset to a family member in the past 12 months is deemed to be fradulent and the court can "unwind" the conveyance. Given that caveat, you might just have your name removed from the bonds.

    When you say bankruptcy is not an option, are you sure? Have you actually spoken with a bankruptcy attorney? Most bankruptcy attorneys will give you a free initial consultuation to see if it is a good fit.
  • 06-02-2006 6:34 PM In reply to

    re: Garnishment of Bonds / Safety Deposit Box?

    And it's possible that the creditor can get a court order for the bank to prevent your access to your safety deposit box.

    With a 12,000 judgment that's a big incentive for the creditor to jump on you with means of judgment enforcement available.

    I'd empty that box if I were in your place.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 06-03-2006 11:27 AM In reply to

    re: Garnishment of Bonds / Safety Deposit Box?

    Thanks, I will. I'll probably cash the bonds even though they're not yet mature.
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