How Do Creditors Find Your Financial Accounts?

Debtors worry about how their creditors are able to discover where they maintain financial accounts. How can your creditors discover your accounts given today’s strict privacy laws?

One of my clients last month has worked all his life as a police detective and private investigator for law firms. He has been asked by attorneys to find debtor assets. He told me that the most effective investigation techniques are informal. Banks may not give out information about customer accounts, at least, officially. However, bank employees will sometimes provide information to people with whom they have a personal or business relationship.

My client stated that over the years he has developed working relationships with various employees at Florida financial institutions through his role as a police detective. He has been able to approach them informally to ascertain if a particular debtor maintained accounts at their employer banks. Since most debtors use one of the larger national banks, my client is able to locate financial accounts of the same majority of debtors with a few phone calls to his friends.

If your creditor does not have available private investigators with banking contacts, the creditor still will be able to discover all of your financial accounts, wherever located, soon after the creditor gets a judgment. Judgment debtors are required to disclose under oath all financial accounts in which they have any interest, and they are required to produce copies of their monthly statements. Asset protection planning protects financial accounts without trying to hide the accounts from your potential creditors.

Last updated on May 22, 2020