What are the laws governing a debt collector’s ability to freeze your bank account under a civil judgement?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are the laws governing a debt collector’s ability to freeze your bank account under a civil judgement?

I have just had a civil default judgement filed against me. I am working to have it vacated. In the meantime, I am afraid of having my bank accounts frozen. Are they unable to freeze your account if it falls under a certain balance amount? What can I do to protect myself so I will have funds to live on?

Asked on September 19, 2011 under Bankruptcy Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If a default and a default judgment have been entered against you, the judgment creditor can then attempt to execute upon your assets to satisfy in part or in full the judgment. Typically a memorandum of costs is sent to the court for issuance as well as a notice of levy, writ of execution, memorandum of garnishee and sheriff's instructions.

The sheriff is then instructed to levy upon the judgment creditor's bank accounts or to do a wage garnishment.

When a levy is placed upon a judgment debtor's bank account the account is frozen for a certain time to allow the judgment debtor to file a claim of exemption to possibly stop the levy and loss of the money.

Most people in your situation either keep cash on hand, regularly change banks with their accounts or have friends hold their money pending a dispute with the judgment creditor.

Good luck setting aside the default judgment.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption