Item — HN Reader

I use a credit union, and I have been the victim of a similar problem as the author, and the credit union folded in exactly the same way. Notably, the credit union is local to a state different from the one that tried to shake me down. I don't especially blame the credit union, though: they were upfront and communicative with me, and told me that their hands were tied.

The advice I was given (not by the CU): either withdraw all my money from the account and put it in a safe deposit box, or wire it to a (very) close relative ASAP -- before the lien is officially issued.

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"withdraw all my money from the account and put it in a safe deposit box, or wire it to a (very) close relative ASAP -- before the lien is officially issued."

IT is generally too late. Both are problematic and can be clawed back relatively quickly (the timing looks suspicious, etc). Yes, they would have to take you to court, but the defense costs usually exceed the asset value (and the author notes this).

The state actually gave a fair amount of advance notice. I was given an exact date for when the lien would go in effect, with over a month of lead time, as I recall.

I'm a little too paranoid to say exactly what I did, but I will say that I'm glad I was given that advice. (I was younger, and had much less money saved at the time; obviously that amount would affect any similar decision now.)