Can a bank put a lien against our personal assets? - Bankruptcy Law Questions and Answers- LawQA.com

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Can a bank put a lien against our personal assets?

A client asked me the following: "If my wife and I give our motor home back to the bank because we're 'upside down' with it, can the bank put a lien against our personal assets?" Such as bank accounts, retirement accounts, our home?

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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Yes, a bank can put a lien against assets, particularly if the bank has obtained a judgment against you. Chapter 13 Bankruptcy relief may be a good solution to stop asset seizure.

Answer Applies to: Indiana
Replied: 12/14/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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A voluntary repossession of an "upside down" vehicle in Colorado will usually result in a deficiency after the sale of the vehicle. What that means is that after the public sale of the vehicle at a loss, the creditor will demand from you whatever the loss may be. To collect the deficiency, the creditor must first bring a lawsuit and get a judgment. Once a creditor has a judgment, then the creditor has the power to garnish wages and bank accounts and place liens on your real estate. Retirement accounts are normally exempt under Colorado exemption law.

Answer Applies to: Colorado
Replied: 12/12/2011

Rhonda R. Werner Schultz, PL
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If the bank obtains a deficiency judgment for the difference between what was owed on the motor home and the amount it sold for, that judgment may be a lien against other assets. Wisconsin exempts certain assets from collection by creditors. Your clients should see a bankruptcy attorney to find out what exemptions they have and what options they may have to deal with the judgment.

Answer Applies to: Wisconsin
Replied: 12/10/2011

Answer By William Weber
Weber Law Firm, P.C.
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No. The bank cannot put a lien against personal assets to recover a debt.

Answer Applies to: Texas
Replied: 12/10/2011

Bankruptcy Law office of Bill Rubendall
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If you give up your personalty to the bank, it can file a lawsuit against you for a deficiency. After obtaining a judgment they can use methods to collect that are authorized under California law. Some of these mechanisms are wage garnishing or levy onbank accounts as well as other personal property. Some assets are exempt, such as retirement accounts. Also, they can file what is called an abstract of judgment, which is a lien that will attach to real property that you own.

Answer Applies to: California
Replied: 12/9/2011

Answer By Daniel Shay
Dan Shay Law
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Yes, absent a BK, a creditor can sue, obtain a judgment then levy bank accounts personal assets. The creditor can also record the Abstract of Judgment at the County Recorder which will act as a lien on Real Property.

Answer Applies to: California
Replied: 12/9/2011

Charles Schneider, P.C.
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"A Client" if this is an attorney you should know the answer. This site is for lay people only.

Answer Applies to: Michigan
Replied: 12/9/2011

Judith A. Runyon, Esq. Attorney at Law
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Yes, if they sue you first, but don't have a bank account with the bank either.

Answer Applies to: California
Replied: 12/9/2011

Law Offices of Robert P. Taylor
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Generally yes, but the bank would have to sue you and get a judgment first. Then your retirement would probably be exempt as well as substantial equity in your home. If you have any accounts with the company that has the RV loan, they can probably take seize your accounts so you may want to move them. For example, if it's a B of A loan and you have B of A checking, they can take money straight from your checking to offset their loss. You should speak with a bankruptcy attorney, so you'll know how to best protect yourself whether or not you plan on filing.

Answer Applies to: California
Replied: 12/9/2011

Answer By Eric Benzer
Eric J. Benzer, Attorney at Law
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Yes.

Answer Applies to: Maryland
Replied: 12/9/2011

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