Need Help with a Frozen Bank Account?
In New York, a creditor for a private debt must obtain a court judgment before restraining any bank accounts. The creditor can restrain up two double the amount of the judgment in any account under the Defendants name, including joint accounts. There are frozen bank account laws that place restrictions on the types of funds that can be subject to debt collection. For example, social security income is protect from debt collectors, as well as 90% of recent employment income. Under these laws, most people are entitled to withdraw up to $2100 in frozen bank funds.
After the funds are restrained, if the creditor is subsequently able to take the funds by a turnover proceeding or otherwise, they will levy the full balance owed and leave you with the rest, so long as there is enough funds in the account to cover the balance. If there is not enough to meet their needs, they will continue to take whatever is added to that account until the needs of the loan is met.
Resolving A Bank Restraint
Depending on the facts of your case, you might be able to contest the validity of the judgment in court by bringing an order to show cause and seek to have the judgment vacated. Alternatively, you can seek a voluntary settlement with the creditor and see if they are willing to accept a reduced sum to satisfy the balance. As an option of last resort, filing for bankruptcy may protect you from further creditor action.
Need Help With A Frozen Bank Account?
Our attorneys have assisted many individuals with respect to resolving frozen bank funds. Since there are funds in the account, we sometimes work to structure these settlements with a conditional release, meaning that upon payment of the agreed upon sum, the creditor would release the remainder of the bank account balance. When possible, it's best to also negotiate that the debt be settled in exchange for the payment, so that the judgment is no longer an issue once the conditional release is completed.
If your bank account is frozen, you might have a limited amount of time to take action before the funds are seized. Contact our lawyers to learn how we assist with resolving frozen bank accounts. The phone call is quick, and the solution might be easier then you think.
Schedule your complimentary initial case evaluation, Call the Law Office of Simon Goldenberg, PLLC today!
