Q: If you have multiple accounts in a bank and a levy is placed on your bank accounts can the debt collector freeze 2
accounts if one of them can more than accommodate the amount of debt they are claiming? And is the SB 616 automatic exemption of a debtor to have $1788 to live on something the bank should have set aside at the time of the levy and withdrawal of funds?
A:
When a debt collector places a levy on your bank accounts, they can potentially freeze multiple accounts, even if one account holds enough funds to cover the debt. This is because the debt collector may not be aware of the balances in each account at the time of the levy.
Regarding the SB 616 exemption in California, this law allows a debtor to have a certain amount of money ($1,788 as of your mention) exempted from garnishment in a bank account. The bank is responsible for automatically setting aside this exempt amount at the time of the levy. If this has not been done, it might be due to an oversight or a lack of updated procedures at the bank. It's important to promptly inform the bank of this exemption right and request that they comply with the law.
Remember, each case can have unique circumstances, so it's beneficial to discuss your specific situation with a legal professional who can provide guidance tailored to your case.
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