If a creditor put a hold on my checking account and my paycheck was deposited into that account, what can I do?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

If a creditor put a hold on my checking account and my paycheck was deposited into that account, what can I do?

I want to do bankruptcy.

Asked on March 19, 2011 under Bankruptcy Law, Illinois

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Also the filing of the bankruptcy may indeed stay the execution of the garnishment or levy but it appears that it has already taken place and that they may have the money needed.  If it is more than was in the account the hold will stay until the judgement is fulfilled.  You can get some relief but you need to move quickly.

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately not much unless you can show that the funds are in some way exempt from garnishment or levy on the account.  When you say that the creditor put a "hold" on the account do you mean that they have a judgement and they filed it with the bank to levy the funds in the account? Then you may have to go to court to file something regarding the judgement -  possibly vacate a default or if your state allows certain exceptions to garnishment under which the money falls then you could also file for that - and you need to also check with the bank what they need as they may have other forms to fill out.  You need to come to some sort of agreement with the creditor to have them release the hold in order to be able to have the paycheck money available to you.  Otherwise, this will continue to happen.  Good luck.


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