Help! My Bank Account Is Frozen!

Fewer things can throw your world upside down like having your bank account frozen. A bank account garnishment or seizure is usually the result of a creditor attempting to collect after a court has issued a judgment against you. The court orders the bank to freeze your account and turn over its proceeds to the judgment creditor. The order is often timed by the creditor's attorney to take effect just before your paycheck is deposited. Seizing a bank account is generally a creditor's first action because federal and state laws limit the amount that can be garnished directly from an employee's paycheck. These limitations do not apply to cash money in a bank account.

Once your bank account is frozen, it is important to act quickly. You may be entitled to protect some money from garnishment, but you must notify the court, the creditor, and the bank that you are asserting your legal exemption rights. A bankruptcy filing will immediately stop a garnishment and unfreeze your bank account. A debtor may be able to force the garnishing creditor to return money seized just prior to a bankruptcy filing.

If you have had your bank account seized, it is important to speak with an experienced bankruptcy attorney immediately and discuss your short term and long term options. Quick action is necessary to unfreeze your account, but it is also important to discuss your long term plan to avoid garnishments in the future. Your attorney can help you decide on a sensible plan to eliminate your debt and progress to a better financial future.

Contact the experienced Chicago bankruptcy attorneys at Glanzer & Associates, P.C. at 1-312-644-2227 to discuss your specific situation, and to schedule your free, in-person consultation.