Protecting Clients From Frozen Bank Accounts
Often, a frozen bank account is the first sign that a creditor is prepared to use all available legal means to collect on a debt such as a defaulted credit card account or medical bill. You may think your creditors are negotiating with you in good faith or that they have given up, but your hard-earned money could be at risk of seizure.
At the Law Offices of Scott R. Schneider, I help New York clients release their frozen bank accounts and avoid account garnishment by filing for bankruptcy protection. Contact me to schedule a free consultation at my offices in Hicksville so you can talk to an experienced bankruptcy lawyer about the steps you can take now to protect your accounts.
What Does It Mean When Your Bank Account Is Frozen?
If a creditor who has a judgment against you discovers that you have an account at a particular bank, it can notify the bank that you owe money on a judgment, and the bank must freeze your bank accounts. Once a bank account is frozen, you will not be able to withdraw any money from it.
Banks are required to notify customers of frozen bank accounts within three days, but most people first find out what has happened when their debit cards stop working or their checks bounce.
A frozen bank account is only the first step toward the creditor actually collecting on the judgment. While some creditors attempt to work out payment plans with debtors, they can also get the county sheriff to seize your money with a garnishment order within a few weeks of the initial freezing of your account.
Take Action Now to Prevent Seizure of Your Funds
Filing for bankruptcy can release a frozen bank account, but once your money has been taken by a judgment creditor, you can't get it back. If your bank account has been frozen, you should act quickly and consult with an experienced attorney to decide whether it is in your interests to file for bankruptcy.
Contact me to discuss what I can do to release your frozen bank accounts as quickly as possible with the protection of the bankruptcy court.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
