How Do Creditors Find Your Bank Accounts?

Another simple method for a creditor to identify a bank account is to submit a credit application. It is a document that is completed by a borrower when he is applying for any type of loan from creditors such as banks or other financial institutions. And, in the majority of cases, these credit applications include needs for bank account information as well.

Through the use of post-judgment discovery, also known as discovery in aid of execution, judgment creditors can learn where a debtor keeps bank accounts. In the context of creditor collection, post-judgment discovery refers to the instruments that enable a creditor to determine whether or not a debtor has assets that are accessible to settle a judgment.

Can a creditor find out where you bank?

  1. Once the creditor has determined where you bank, he or she can submit a copy of the court ruling, together with a writ of garnishment, to the financial institution in question.
  2. The accounts in question will be frozen by the financial institution.
  3. Unless you previously paid the creditor simply in cash or money orders, the creditor is likely to already have a record of where you bank with that institution.

Can creditors take money from your bank account?

  1. As an alternative to just freezing your account, creditors may pursue a bank levy or wage garnishment in order to collect more money from you.
  2. According to The Balance, a bank levy is a legal proceeding that allows creditors to take money out of your bank account without your knowledge.
  3. Following the freezing of your account, the bank is required to make payments to your creditors in order to repay your debt.

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