Bank Account Freeze

Bank Accounts Frozen?

You went up to your local ATM. You tried to withdraw some cash. The ATM would not give you any, even though you deposited a check a few days earlier. When you check with the bank the next day, you find out that your account has been frozen.

I hear this story frequently. For some people, frozen bank accounts are the first sign that something is amiss. If you face a bank account freeze, I can assist you. Contact the Law Offices of Charles R. Tropp for a free consultation.

Who can freeze your bank account?

Nearly any creditor with a money judgment can order a bank account freeze. I have represented clients who have had their accounts frozen because of the following:

• Tax arrears
• Credit card debt
• Medical bills

Once a creditor obtains a judgment on a debt, they serve your bank with papers. When the bank receives the judgment papers, they are required to hold up to twice the amount of the money judgment. Many of our clients share accounts with spouses or parents. Even so, the bank will freeze the account--even if a parent relies on that account for social security.

Unfreeze Your Account

With a Chapter 7 filing, the debt that gave rise to the bank freeze is simply discharged along with your other debt. If you file a Chapter 13 case, the debt receives a dividend along with your other unsecured debt and at the conclusion of the case you receive a full discharge of all your pre-existing debt. If you want to find out more about your debt relief options, I would be happy to discuss them with you.

If you are dealing with frozen bank account, contact a Staten Island bankruptcy attorney for a free consultation.