Stop Frozen Bank Accounts

When a creditor has a judgment and they find out where you bank they can freeze your bank account by sending over a copy of the judgment to the bank. This is called a levy of the bank account. The levy does not take place until a hearing is held in state court. Most people find out about the levy on their bank account from the bank and not the creditor who froze it. Filing bankruptcy can release the creditors levy on the bank account.

We have helped numerous people unfreeze their bank account once it is frozen. However, once the bank gets notice of the judgment it will take a court order from the bankruptcy court to unfreeze the bank account. That court order takes time usually 1 week or so to get an order from the bankruptcy court avoiding the lien on the persons bank account and then the bank has to process it which takes time also. If you are experiencing financial difficulties please call my office for free consultation at 212.315.3755

Attention: Residents of New York with Frozen Bank Accounts

In New York State, if your bank account was frozen by a creditor and you had less than $2,664 in your bank account, your bank must release to you any amount that was less than $2,664. Under a new New York State law your bank account is protected up to $2,664.

If you live in NYC or its suburbs, more than $2,664 is protected. The corresponding wage exemptions based on the new minimum wage amounts are as follows: $3,240 in New York; $2,880 in Nassau, Suffolk and Westchester Counties; and $2,664 in all other parts of the state.

The name of this law is the Exempt Income Protection Act. If your bank froze all of you money, you are entitled to the return of any amount below $2,664. You should go to your bank and speak to a bank officer and ask for the release of your money.

If you want to discuss this with one of our attorneys, please call my office for free consultation at 212.315.3755.