How to open a bank account that no creditor can touch?

Most banks, upon receipt of a court order, will immediately freeze any of the accounts in which the debtor is the owner or co-owner. It does not matter if you have arguments or complaints; until the embargo is lifted, you will not be able to use your accounts.

The bank embargo is one of the worst news for a debtor, since it leaves him without liquidity to cover the expenses inherent to the process, and sometimes without the possibility of covering essential expenses such as food and transportation.

However, how can you protect your bank account against creditors? What can you do to prepare for this situation? And more importantly, how to open an account that your creditors cannot touch? In this article, we will explain how.

State banking legislation


Opening a bank account that no creditor can affect with a lien is a challenge. Those who do not expect this type of situation are in significant financial trouble.

The most obvious recommendation would be not to ignore creditors, so they do not reach this point. But if, for some reason, you decide not to cover your debt, we will explain how to carry out this alternative.

The first thing you should do is to check the laws regarding judicial liens in your state; if your state allows the embargo from banking institutions, you must locate a state that prohibits it.

Opening an account in these types of states is the first option you have to protect your assets; in most cases, it is not necessary to be a resident of the state where you open the account.

Offshore bank account

Another option to be safe from creditors is to open an offshore account.

According to the annual rankings of Global Finance magazine, US banks are one of the least secure in the world in terms of protecting bank assets; so, offshore accounts prove to be of great alternative since they are located abroad.

These types of accounts enable economic transactions around the world. Placing a lien on one of these is almost impossible for a creditor, since offshore bank accounts are mostly open in countries like Switzerland, Germany, or the Netherlands.

Banks are legally obligated to comply with court orders only if the judge issuing the order has jurisdiction over the bank. Therefore, banks based in other countries are not required to comply with embargoes issued from United States judges.

On the other hand, the blog Nomad Capitalist emphasizes an important aspect: these accounts are not meant to hide money, that is illegal; it is an alternative to protect your assets.

Also, this article they explain in detail how to open the account:

How to open an offshore bank account

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Irrevocable trusts

Trusts are mainly classified as revocable and irrevocable.

An irrevocable trust is another excellent option to guarantee the protection of your bank account, since it generates a separation of the owner’s assets. Thus, if a creditor claims those assets, that money will not be taken as the debtor’s property.

When placing bank assets in a trust, you must structure your parameters very well, so that in no way the administrator can be asked to make changes that benefit the creditors.


Exemptions will not ensure the protection of your bank assets. Therefore, it is not advisable to rely on them instead of creating a new account, as mentioned above. However, it is important to know and take advantage of their benefits.

The following income is exempt regardless of the state where you live or in which you have your bank accounts:

  1. Social Security and Supplemental Security Income.
  2. Federal, civil service, and railroad retirement benefits.
  3. Veterans benefits.
  4. Student loan disbursements.
  5. Assistance from FEMA (Federal Emergency Management Agency).

On the other hand, although these funds are protected, a creditor can still seize them, and if you do not follow the procedure to demonstrate your exemption, you may lose them.

In any case, no matter what option you choose, we recommend getting an appointment with a lawyer expert in financial issues. He will be able to give you more detailed information on how to protect your assets; the best form of defense against your creditors is to have an excellent preparation.

One of the best and oldest financial advisory corporations is Asset Protection Planners; you can read more about them on this link:

asset protection planners website