Can a New York Judgment Grab Your Texas Bank Account?
TM
When my Texas Wells Fargo business account was emptied by a “legal order debit” based on a New York default judgment, one of my first questions was simple: Can a judgment from another state really reach into a Texas bank account like that? The short answer is that out‑of‑state judgments do not automatically become local judgments, and there are supposed to be steps—called “domestication”—before they can be used to freeze or drain a local bank account.
What Is an Out‑of‑State (Foreign) Judgment?
If a court in one state, like New York, enters a judgment against you, that judgment is considered a foreign judgment or out‑of‑state judgment in every other state. The U.S. Constitution requires states to give “full faith and credit” to each other’s judgments, but that doesn’t mean a New York creditor can walk into a Texas bank and take money without involving a Texas court.
Most states, including Texas, have adopted the Uniform Enforcement of Foreign Judgments Act (UEFJA). Under that law:
The creditor must file the out‑of‑state judgment with a court in your state (for example, a Texas district court).
The foreign judgment is then treated like a local judgment, subject to local procedures and defenses.
Only after that filing and required notices can the creditor use normal enforcement tools—like garnishing a bank account in that state.
In my case, the New York merchant cash advance judgment against BroncBuster and others was never filed and domesticated in Texas before Wells Fargo drained a Texas debtor‑in‑possession account belonging to A&R Construction. No Texas judge ever reviewed the judgment or signed an order allowing the money to be taken.
What Is a Bank Levy or “Legal Order Debit”?
A bank levy, garnishment, or legal order debit is when a creditor uses court paperwork to reach money in a bank account. The exact names and procedures vary by state, but the basic pattern is:
Creditor gets a judgment.
Creditor obtains a writ, levy, or similar order from a court where enforcement is allowed.
That order is served on the bank where the account is held.
The bank freezes the funds and then turns them over if the order checks out.
Banks obey these orders because ignoring them can expose the bank to contempt or other penalties. But banks also operate “subject to applicable law,” and in many states, that includes:
Respecting local exemptions and minimum protected balances.
Recognizing that out‑of‑state judgments need to be domesticated before they can be enforced like local judgments.
In my situation, Wells Fargo used the New York judgment to issue a legal order debit against a Texas account without any domestication and even took more than the face amount of the judgment once fees were added.
Why Domestication and Notice Matter
Domestication rules exist for a reason:
They give local courts a chance to confirm that the out‑of‑state judgment is real and final.
They give the person or business another clear notice that a judgment is being brought home and may be enforced against local property or bank accounts.
They make sure local exemptions and protections are applied before money is taken.
In my case:
The New York lawsuit was never properly served—USPS tracking in the court file showed the certified mail was returned, not delivered.
No Texas domestication ever happened.
Wells Fargo still processed a New York legal order against a Texas debtor‑in‑possession account and emptied it with a legal order debit.
From a small‑business owner’s point of view, that feels like the entire domestication system and notice purpose were bypassed.
What You Can Check If Your Account Is Hit
If you wake up to a frozen or emptied Wells Fargo account because of a legal order or bank levy tied to another state, here are basic checks to discuss with your own lawyer:
Confirm where the judgment came from. Which state’s court issued it, and what case number?
Obtain the service records. Pull the full court file, including affidavits of service and tracking numbers, to see how and whether you were actually notified.
Ask whether the judgment was domesticated locally. Contact your local court clerk or search online for any filing that brings that foreign judgment into your state under the UEFJA.
Review what the bank agreement says about legal orders. Many agreements, including Wells Fargo’s, say the bank may honor legal process it “believes to be valid” but also say accounts are subject to applicable law.
This post is not legal advice, but it reflects what I wish I had known before a New York judgment I never really got notice of was used to trigger a Wells Fargo legal order debit against a Texas business account.
If you want to see how this played out step by step, you can read
“What Happened in My Case”
and
“Dealing With Wells Fargo After a Legal Order Debit”
, and if your situation sounds similar, consider sharing your story so patterns can be documented.