Posted on: 14th Dec, 2008 09:25 pm
Hi,
I may be going into foreclosure soon and I have 401k accounts and a very small amount of savings. Can the mortgage companies dip into my bank accounts to retrieve the money they need? Also the money in my 401k?
I'm extremely scared and nervous and not sure what will happen?
Any advice you have is extremely appreciated.
Thanks
I may be going into foreclosure soon and I have 401k accounts and a very small amount of savings. Can the mortgage companies dip into my bank accounts to retrieve the money they need? Also the money in my 401k?
I'm extremely scared and nervous and not sure what will happen?
Any advice you have is extremely appreciated.
Thanks
Hi CNJ!
Welcome to forums!
The 401(k) plan is protected by pension laws. Thus it is protected from garnishment by creditors. As far as savings account are concerned, I think they can be garnished. But you should remember that creditors cannot garnish your savings account without any judgment.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
The 401(k) plan is protected by pension laws. Thus it is protected from garnishment by creditors. As far as savings account are concerned, I think they can be garnished. But you should remember that creditors cannot garnish your savings account without any judgment.
Feel free to ask if you have further queries.
Sussane
Dear Sussane,
Thanks for your response. How would i know if a judgment is placed on my savings account? Is this something that could have initally been in the paperwork when i closed on the property as well? Would there have been any statments iniatially about siezing any property or assets if i defaulted on payment?
Thanks
Thanks for your response. How would i know if a judgment is placed on my savings account? Is this something that could have initally been in the paperwork when i closed on the property as well? Would there have been any statments iniatially about siezing any property or assets if i defaulted on payment?
Thanks
Welcome CNJ,
As far as I know, the creditor has to file a judgment in order to garnish wages or the savings account. So you will get a copy of the judgment when your savings account will be garnished.
Your mortgage docs will definitely state what actions the lender can take if you default on the mortgage payments.
As far as I know, the creditor has to file a judgment in order to garnish wages or the savings account. So you will get a copy of the judgment when your savings account will be garnished.
Your mortgage docs will definitely state what actions the lender can take if you default on the mortgage payments.