Pattaya sees rise in independent Chinese tourists amid decline in group tours

[TongueThaied]

Somebody raised this question several months ago. There were many "helpful" answers to the OP such as "Be a man; pay your debt!" Of course, such responses are infantile and offer nothing to resolve this interesting legal question. I did not see a satisfactory solution offered by anybody.

Under US law, it is both legitimate and appropriate to plan for bankruptcy by preserving some assets with the intention of discharging debt in the future, so long as fraud is not involved. There are many reasons, such as enormous medical bills, why one may have run into overwhelming financial problems. Intelligent planning makes good sensed and has absolutely nothing to do with whether one is a "man." Even "real men" can run into unexpected financial catastrophes.

Because these are tough financial times for many, and many of us live here precisely because we simply can no longer afford to live in our home countries, this question seems appropriate for ThaiVisa. The question stuck in my mind because the OP may be in desperate financial straights and deserves a straight answer instead of a bunch of gratuitous BS. I am a recovering lawyer from the US, but have not kept up with the law. Accordingly, I posed the question to a lawyer friend of mine who currently practices creditor law in Dallas, Texas. Here is the answer:

As for accounts held in the U.S., it is impossible to for a credit card's issuing bank to freeze a delinquent debtor's bank account unless: (1) the account in question is held at the credit card's issuing bank (in that case, the credit card and deposit agreements make the account collateral to any debt, and collateral can be frozen); (2) the credit card's issuing bank has filed a collection lawsuit against the debtor and has obtained a court order to freeze the account based on a strong showing that it is the only available asset and is at great risk of flight (it is difficult to obtain such an order and you would typically KNOW if you had been sued); or (3) the credit card's issuing bank has completed a lawsuit against the debtor and has a valid court judgment against the debtor that the bank is seeking to satisfy.

HOWEVER, the laws of the jurisdiction in which the account is located govern. Therefore, if the bank account in question were located in Thailand, Thai laws would govern as to whether a pre-judgment freeze could be placed on the account. I have no idea as to how Thai law might apply to this question. Based on what I have seen in the news, it seems that the application of bank account freezes are quite liberal here and can be based upon mere suspicion, while the facts are unraveled later, but I do not know.

Conclusion: If you are delinquent in paying credit card debt, you have a separate bank account and wish to avoid a surprise freeze on that account: (1) keep the bank account you wish to protect in the U.S.; (2) be sure the account is not at the credit card's issuing bank (i.e., if the delinquent credit card is issued by Bank of America, do not keep your deposit in an account at Bank of America; move it to another bank or financial institution; (3) always keep the credit card's issuing bank apprised of your current address so you can be served with any lawsuit against you; and (4) if you are sued by the credit card's issuing bank, remove the funds you wish to protect from a freeze until the suit is resolved.

As to this last piece of advice, many people believe that if a plaintiff cannot serve you with lawsuit papers (i.e. they cannot find you), then a lawsuit cannot proceed. All though this is generally true, do not count on it. If somebody at your last known address accepts service of process without your knowledge, the lawsuit will proceed also without your knowledge, and the bank will obtain a default judgment against you, without your knowledge. The same is also true if the bank sends service of process to your last known address by U.S. Certified Return-Receipt Mail and somebody at that address signs for it. In addition, you may have agreed to alternative service methods in you cardholder's agreement (such as service upon your state's secretary of state in the event you cannot be personally located). Service of process is controlled by state law and varies from state to state. There may be other factors involved for people living abroad.

Finally, never lie. All of the advice above is perfectly legal so long as you do not lie or deceive. If you lie about anything, you may be guilty of fraud. That being said, you have no obligation to speak with anybody (unless ordered to do so by a court of competent jurisdiction). You have the right to simply remain silent. Most people that get themselves into trouble do so by either lying or simply talking too much.

[liveinlos]

If it was raised several months ago, why you are you just responding now?

[TongueThaied]

If it was raised several months ago, why you are you just responding now?

I'm slow.

[flying]

It is my understanding that credit cards remain unsecured debt in the US.

As such bank accounts may not be seized.

Of course that is assuming no obvious fraud. I imagine...that if one took the 20k cash advance that cards like mine allow & then put it in a bank & refused to pay...then the CC company would go after it.

Lastly I have read of some CC companies now trying to get judgments for debt defaults over 5k. This seems to be in some States only & I have not really looked closely at it does not pertain to my life.

But I did read that in one State...Indiana if I recall correctly they did garnish wages on behalf of the CC company. No mention of bank accounts being frozen & also in that case no bankruptcy was declared.

The defaulter was just asked in court if she had made the charges. When she responded yes the court then made the judgment to garnish an amount from her pay checks.

Edited July 31, 2010 by flying