Freezes on Your Bank Accounts
Free up our assets
Has your bank account been frozen? A creditor may freeze your bank account in an attempt to obtain payment for a debt. They may freeze up to two times the amount of money you owe, and you will be unable to access this money. Any additional money that you deposit may be frozen as well. A freeze on your bank account can mean that you have no money to pay your rent, buy groceries or even pay for a taxi.
If your bank account has been frozen due to a default judgment (wherein the creditor sued you in court for the money you owe, but you did not show up, the judgment would be awarded to the creditor by default) your Long Island bankruptcy lawyer may be able to help you contest this so the freeze on your account is lifted. Your bank will not give you notice before freezing your accounts. Once the bank receives the notice from the creditor, your funds will be frozen. You will need to take action to remedy the situation.
By law, the creditor is supposed to notify you that they have filed a lawsuit against you, and then that judgment has been passed. Their failure to do this may help your attorney in going to court to unfreeze your account.
Can a Long Island bankruptcy attorney help?
An attorney at Jacoby & Jacoby can review your situation and determine what can be done in order to unfreeze your accounts. With over 50 years of experience in bankruptcy cases in New York, our attorneys are qualified to offer you honest and sound legal counsel in regards to your debt. At our firm, we help clients throughout Nassau, Long Island and Suffolk who have suffered a frozen bank account.
Freezes on your bank accounts are just one of the ill effects you will suffer if you have overwhelming debt. Creditor harassment,
wage garnishment are all additional penalties you may suffer if you do not act quickly and work with an attorney who can help to protect your property and assets.
If you are facing overwhelming debt and see no way out, a Chapter 7 or
Chapter 13 bankruptcy may be the right option for you. When you file for bankruptcy, all creditors are immediately prohibited from contacting you or taking any action against you to collect the money they are owed – and this includes freezing your bank account. Additionally, your debt may be discharged (as in a Chapter 7 bankruptcy) or you may be able to work out a payment plan (as in a Chapter 13 bankruptcy.)