Frozen Bank Account Attorney in New York
Regain Access to Your Hard-Earned Money
There are many reasons people get in over their head in debts, but they all have at least one thing in common: At some point, the creditors will come calling and, if you do not pay what you owe, they will likely sue you to collect the debts. If they are successful in court, they will obtain a judgment against you. Unfortunately, that is where your problems can become even worse.
If your creditor obtains a judgment against you, your bank accounts can be frozen and your wages can be garnished. Being locked out of your own bank account can wreak havoc on your entire life. You will not have access to the money you do have, with some exceptions.
If you discover that your bank account has been frozen, it is important to speak with an experienced debt and bankruptcy attorney immediately to discuss your options. You will need to take swift action to unfreeze your account. New York frozen bank account lawyer Robert Jacovetti can stop the harassment and help you find relief.
Call us at (516) 217-4488 for a free 30-minute initial consultation.
The Impact of a Frozen Bank Account
Once a creditor obtains a judgment against you, their law firm sends out a restraining notice to all the banks and credit unions where you do business. When your bank receives a restraining notice, it must freeze all the funds in the account up to twice the amount of the judgment.
As a result:
- You will not be able to access your money
- Any un-cleared checks you have written against the account will bounce
- Any funds that are directly deposited into the account after the restraining action will also be frozen
- A marshal or sheriff will serve a “property execution” on your bank; once that happens, the money is actually withdrawn from your bank and dispensed for the judgment
Having your bank account frozen in New York is a serious issue that you should not face alone. Your entire financial well-being is at stake. If you are facing debt collection or are being sued, seek representation from our firm as soon as possible.
When Can a Creditor Take Your Money?
Under New York State and federal law, there are some funds that may not be seized by creditors with judgments against you. These items are considered “exempt funds.”
Exempt funds include:
- Supplemental Security Income (SSI)
- Spousal support, alimony, or child support
- Veterans’ benefits
- Social Security retirement
- Social Security Disability (SSD)
- Disability benefits
- Unemployment benefits
- Public assistance
- Workers’ compensation benefits
- Black lung benefits
- Railroad retirement
Under the Exempt Income Protection Act (EIP) of 2008, some money also held in bank accounts is protected to make sure that individuals have enough funds available to meet their basic needs, such as food, rent, and medicine.
Under the Exempt Income Protection Act (“EIP Act”):
- $2,500.00 in accounts with reasonably identifiable directly deposited exempt income must remain unrestrained
- In all other accounts, $1,740.00 cannot be restrained following the issuance of a restraining notice by a private judgment creditor
These guidelines can be frustrating and confusing for someone who has never been through this process before. That is why it is important to speak with Attorney Robert Jacovetti, a consumer protection lawyer who has helped numerous people in New York deal with their burdensome debt.
How to Unfreeze your Bank Account
If a creditor obtains a judgment against you, your bank account can be frozen. If this happens, the best way to unfreeze your bank account is to get the judgment against you "“vacated” or erased.
Other ways to unfreeze a bank account include:
Paying the debt you owe
Filing for Chapter 7 or Chapter 13 bankruptcy
Look for exempt deposits
Creditors are supposed to serve you with legal notices regarding lawsuits brought against you. If they do not properly comply with New York State and Federal Consumer Protection Laws, Robert can use their mistake to your advantage. Additionally, action can be taken to remove the restraints on your bank accounts, allowing you once again to gain access to your money.
In any case, it is crucial that you contact an experienced, knowledgeable New York debt defense attorney as soon as you find out your bank account has been frozen. Our firm can prepare a strategy that will unfreeze your accounts and we can ask the court to toss out the money judgment against you.
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