Posted on
June 15, 2009
at
7:08 am
Assuming that they can or have the right to because I've defaulted on my payments...is there a process to it that I may be able to avoid it...?
Posted on
June 15, 2009
at
7:13 am
Yes your account can be frozen by the bank via a court order and there are court prescribed rules for seizing (freezing) a bank account, and yes there are things that you can do to prevent it from happening. For the seizure to happen, the debt collector must first obtain a court judgment against you. What you can do to make that less likely is to try to negotiate a payment plan or an agreement with your creditors.
Posted on
June 15, 2009
at
7:20 am
So don't wait for your creditors to obtain a judgment against you, not only is it going to be inconvenient while you are serving it, you would also have to worry about your life after it (post-judgment). Wage garnishment (any judgment) affects your credit negatively which means that your chances of receiving a loan or open a bank account or and even your chances of leasing a place would be diminished
Posted on
June 16, 2009
at
9:23 am
Also, if your bank account is already levied, you may want to check your state's exemptions laws. Depending on your situation it is possible that some or all of the funds in your account that were levied were exempt from such action. While this is rare- it is important to understand your rights.
Posted on
June 16, 2009
at
4:11 pm
Ok, but wouldn't they want to try and garnish my wages first? I mean, do I really have to be worried about creditors coming after the funds in a bank account? What else could they possibly do?
Posted on
July 9, 2009
at
12:20 pm
I would say that if your bank account is with the creditor who you owe credit card debt to (and are behind on payments) it may be easier for them to levy your bank account. It is important to keep in mind for anyone asking can a bank freeze my account- some loan and credit card contracts have a clause in them stating that if you bank with the lender (have a checking or savings account with them) and you fall behind on a credit card they extended to you, they do not have to get a judgment first before freezing the account.
Posted on
July 9, 2009
at
5:53 pm
Right, and if you don't bank with the owed creditor, then you could assume that they would most likely attempt a wage garnishment. But can they still freeze a bank account of that is in your name- yes, potentially, if you do nothing to resolve the debt after the creditor has obtained a judgment against you.
Posted on
July 29, 2009
at
6:09 am
So what you can do to avoid the bank freezing your account is to try and negotiate your debts before they threaten to sue you for a judgment.Creditors are now open to negotiations. You may try to do it yourself or you may consider hiring the services of a debt settlement company. Different creditors do have different settlement policies and if you are not an insider in the industry..it would be almost impossible for you to know.If you are interested to be matched up to the right settlement company, feel free to fill out one of the forms here and speak with a debt consultant. You won't be asked to pay anything.
Posted on
July 29, 2009
at
6:11 am
Would filing bankruptcy stop a bank from freezing a consumer's account?
Posted on
July 29, 2009
at
6:14 am
Yes I think so, filing either Chapter 7 or Chapter 13 would stop the the bank levy via the automatic stay protection.
