What is a lien creditor?

Lien creditor means a person that acquires a lien through a judicial process and includes a levying creditor and a bankruptcy trustee. A lien creditor’s interest arises involuntarily and thus a lien creditor is not a purchaser (including a secured party).

Can a creditor put a lien on your bank account?

While the laws regarding bank levy vary by state, in many cases, a creditor can take all the money you have in an account until the debt you owe has been repaid. To place a lien, or levy, on your bank account, a creditor must serve a writ of execution on the bank.

Can a creditor take money from your business bank account?

The creditor can seize, or take, the funds in your business bank account up to the amount granted under the judgment. If the business that was sued has multiple business accounts, the creditor may seize funds from one or all of the accounts in satisfaction of the judgment debt. The creditor can seize the funds at the time…

Can a judgment creditor seize a bank account in Florida?

In Florida and in most other states, the judgment creditor’s legal tool to seize bank accounts is the writ of garnishment. Garnishment is the legal procedure a judgment creditor can used to intercept debts a third party owes to the debtor.

What happens if you are not personally liable for a business debt?

If you aren’t personally liable for your business’s debts, you have a lot less to worry about: a creditor can only go after your business’s bank account and assets if your business doesn’t pay its bills; creditors can’t take your home or other personal property.

While the laws regarding bank levy vary by state, in many cases, a creditor can take all the money you have in an account until the debt you owe has been repaid. To place a lien, or levy, on your bank account, a creditor must serve a writ of execution on the bank.

In Florida and in most other states, the judgment creditor’s legal tool to seize bank accounts is the writ of garnishment. Garnishment is the legal procedure a judgment creditor can used to intercept debts a third party owes to the debtor.

Can a creditor place a judgment lien on your property?

Most homeowners have prior liens such as mortgages or home equity lines of credit. Foreclosing on the property is very expensive for a judgment lien holder. In many states, the creditor must post a bond, and pay for a title search. If the amount owed is small, it is unlikely that the creditor will bother.

If you aren’t personally liable for your business’s debts, you have a lot less to worry about: a creditor can only go after your business’s bank account and assets if your business doesn’t pay its bills; creditors can’t take your home or other personal property.