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HDW
10-31-2012, 11:57 AM
I have a question about bank account garnishments.
I own a small business - c corp.
I defaulted on my account with a vendor for $4500.
The vendor filed a lawsuit for $7500 in city court and obtained a judgement.
A bank garnishment was recently issued by the court and mailed to my bank.
I had $8500 in the bank and immediately withdrew $8000.

Can I open a new account at a different bank?
I just finished a divorce and it wiped out myself and the business and need competent advice.

Thank you in advance

Freelancier
10-31-2012, 12:46 PM
Yes, you can open a different account... but the judgment will end up applying to any account you have, so you either have to go all cash forever or just go ahead and pay the bill (or call the vendor to negotiate a payment schedule, which is what you should have done in the first place).

HDW
10-31-2012, 01:08 PM
I dont have any money though.
But i do have work coming up soon from a client and should be back on my feet soon.
I thought of just creating another company with different TIN and new bank account, license, etc for this upcoming work.
Is this a feasible option?

nealrm
10-31-2012, 02:22 PM
If you are asking us for help circumventing a court judgement against you, then you are out of luck.

billbenson
10-31-2012, 02:53 PM
Well you already took your 8000 bucks out. I'm assuming your intent is to pay him, you just can't and survive. Get a job at Walmart, keep your accounts alive at your bank. Autodeposit your wages from Walmart to your bank. When money comes in from your business again, pay the customer.

Oh, and eat rice and beans.

Freelancier
10-31-2012, 03:44 PM
Any kind of judgment is against you AND all your assets, regardless of the way you try to hide it. If you started another business that was a C Corp, you might be able to push all your earnings there... but then the minute you transferred the money to your personal account to send on anything, they'll take it. And if you used the C Corp to pay your personal expenses, they can just grab everything out of there directly.

You're better off trying to negotiate a reasonable solution with your creditor.