Question

Can a creditor with a judgement take money from my prepaid debit card?

Are electronic funds of this type safe from creditors?
I am trying to start over and am basically homeless. I earn a paycheck, but have no bank account etc. Cash is dangerous to carry and a debit card (Green Dot etc), looks safer. However, I can't afford to have a creditor take my money and therefore I only cash my paycheck. If I could deposit onto a prepaid debit card it would be safer for me than carrying cash on my person. I need a safe way to save up money to someday get a car and start building my life up again. Only then can I start to repay my old (revolving credit) debts, and rebuild my credit.
I am in Texas, although all of my debt was accrued in Kansas. Banks have told me that as everything is electronic a traditional checking/savings account would not be safe from creditors, so I need an alternate solution for safely building up
My concern is that any money I build up towards that end can be "electronically" removed by a creditor and leave me completely broke again

7 years ago - 6 answers

Best Answer

Chosen by Asker

Unless you advise your creditors you have a pre paid debit card they will probably never know. I do not think they have the legal authority to simply take money from your card. Do not provide them details of your pre paid debit card and I think you will be alright. GOOD LUCK

7 years ago

Other Answers

I am not familiar with a "prepaid debit card", however if the funds are never in a financial institution where they can be tracked you *should* be safe. I am assuming that this debit card is sort of like a gift card from a department store -- if that is the case, your money is no safer on that than in your wallet -- in fact, potentially less so. I don't really see much difference in the use of the "prepaid debit" than cash, but that is obviously your business to decide.

The point being -- you should be safe using the "prepaid debit card" just as you are with cash.

by falcon.medical - 7 years ago

Just don't get the debit card from a creditor you owe money. But as long as you dont have to give your social security number they wont be able to find you.

by misty m - 7 years ago

If you work, you are more likely to have your paycheck garnished before it even gets to your card. If they happen to find the account (Your card) they could garnish that too (depending on the state you live in)

by Zzyzx - 7 years ago

To me it sounds like chapter 7 or 13 bankruptcy would help your out. This would prevent any garnishment. By law the Judge must give you enough to live on and be able to afford rent somewhere.

The only safe way is get a foreign bank account but report it to the state irs and the federal irs. So, they won't get you for tax problems.

You could also get a safe deposit box at different banks and put money in it. They don't need to know what your put in there.

A Simon Mall visa gift card would work because it can not be garnished but you can not have your paycheck deposited in it.

by gpatrick900 - 7 years ago

If the judgement says they can do that then they will. It would be best for you to carry cash even though you don't want to.

by Theresa M - 7 years ago