How To Stop Frozen Bank Accounts With Bankruptcy
Have you ever had your bank account frozen? If so, you know how frustrating it can be. New York Bankruptcy Lawyer Joseph Lassen can help you stop a frozen bank account.
When creditors freeze a bank account, it can be very difficult for the account holder to access the funds. In some cases, the account holder may need help accessing the funds. This can have several consequences for the account holder, including:
- Difficulty paying bills or purchasing necessities
- Being unable to pay taxes or other government fees
- Having to take out loans or sell assets in order to access funds
- Potential damage to credit score or negative impact on other financial accounts
Account holders need to understand their rights regarding frozen bank accounts. Sometimes, creditors may illegally freeze an account without notifying the account holder of their rights. Account holders should familiarize themselves with the laws and regulations in their state or jurisdiction regarding frozen bank accounts.
It is also essential for account holders to explore all of the available options when it comes to recovering funds from a frozen bank account. Depending on the situation, certain legal measures can be taken to allow the account holder to access their funds.
Consult with an experienced New York Bankruptcy Lawyer to determine the best course of action in order to ensure that all rights are respected, and all possible avenues explored.
Bankruptcy Attorney Staten Island NY — Your Solid Defense Against Frozen Accounts & Predatory Creditors
If a creditor discovers where your bank is located, they can serve the bank with a copy of the judgment. This process is called a levy on the bank account. However, before this can happen, the creditor must schedule and attend a hearing in state court. Often, the bank- and not the creditors – becomes aware of levies being placed. If releases from creditors’ levies are desired, one course of action may be to declare bankruptcy.
To unfreeze a bank account, creditors must serve the bank with a court order from the bankruptcy court. This process usually takes one week in total; however, the actual time frame for each individual component can vary. For example, it may take around one week to obtain an avoid lien notice from the bankruptcy court and then additional processing time from the bank itself once they receive this notice.
If a creditor has frozen your New York State bank account, the bank will release any amount less than $2664. A new law in New York State protects your bank account up to $2664. Although, there are wage exemptions based on the new minimum wage amounts, which are as follows:
- New York: $3,240
- Nassau, Suffolk, and Westchester Counties: $2,880
- In other parts of the state: $2,664
The Exempt Income Protection Act provides protection to residents of New York City and its suburbs, with a minimum wage exemption of $2,664. This means that if you live in any other area of the state, your bank must return any amount less than $2,664 to you upon request.
Frozen bank accounts can be a major problem, especially if you’re trying to get your finances back on track. However, by understanding the bankruptcy process and how it can help you, you can put a stop to frozen bank accounts and get your life back on track. If you’re struggling with frozen bank accounts or are being harassed by predatory creditors, don’t hesitate to reach out to our Staten Island New York bankruptcy lawyers today.