Q: Can creditor put a account freeze or bank levy on fraudulent transferee's bank account?
I won judgment against debtor in the amount of $170K, debtor refuses to pay for 7 years
Now I find a debtor's past bank account A, I am in the process of put bank levy on this account A.
However, if this bank account A is closed by the debtor, and I can trace to a target account B(in the name of a third party) he transferred money to (I can approve His transfer is fraudulent transfer per California CIV 3439.05) , how can I ask court to put a freeze (or levy) on this target account B (in the name of a third party)immediately so as to stop the money in account B be transferred.
This is important as I need the court to issue an order to freeze this account B, or issue a Writ of Execution on this account B( in the name of third party) to avoid subsequent fraudulent transfers going on and on.
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- California
- (916) 704-3009
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- Answered
A:
Fraudulent Transfers: If you have evidence that the debtor engaged in fraudulent transfers, you may have legal recourse to recover the transferred assets. Fraudulent transfers involve intentionally transferring assets to another party to avoid creditors. Laws regarding fraudulent transfers vary, and it's important to consult with an attorney familiar with the relevant laws in your jurisdiction.
Account Freeze or Bank Levy: Typically, you can seek to freeze or levy a debtor's bank account where you have a judgment against them. However, if the debtor has closed the original account and transferred funds to a new account held by a third party, it may complicate the situation. It may be necessary to prove that the transfer was fraudulent to have a legal basis for freezing or levying the funds in the target account.
Court Orders and Writs of Execution: To freeze or levy the target account B (in the name of a third party), you would likely need to obtain a court order specifically directing the freeze or levy. This may involve presenting evidence of the fraudulent transfer to the court and seeking appropriate legal remedies. A writ of execution may be another option, but the process and requirements can vary depending on your jurisdiction.
Working with an Attorney: Given the complex nature of debt collection and asset recovery, it is highly recommended to consult with an attorney experienced in these matters. They can assess the specific details of your case, review applicable laws, and guide you through the legal process to maximize your chances of recovering the owed amount.
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