What to do if my bank account was frozen and a creditor is saying that it is taking every dollar in my account, plus a percentage of every check until it is paid?

This was out of the blue and was from 4 years ago they said. How can they take all my money and leave me no money to pay bills and live? My car is on empty and I have a son and baby on the way. How can they do this to me?

Asked on October 15, 2013 under Bankruptcy Law, New York


Anne Brady / Law Office of Anne Brady

Answered 7 years ago | Contributor

It is called garnishment.  If this creditor has a judgment against you and found your bank account, it can take any money in there (with certain exceptions) and a percentage of what you make until the judgment is paid off.  They can not take all of your income, only a percentage.  Generally, you can petition the court to reduce the percentage if you need the money to live on.  You can either file a petition with the court to reduce the percentage, or you can attempt to negotiate a payment plan with the creditor as a way to get it to agree to lift the ongoing garnishment.

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