Posted on August 12, 2009 at 3:18 am I heard some folks at work talking about getting collection calls. They were asking each other questions and giving each other general and tentative answers..one of those questions was, "can a debt collector really freeze my bank account? How? Could they just make a phone call to the bank or something and then--I can't access my account anymore?"

Posted on August 12, 2009 at 3:24 am "Can a debt collector freeze my bank account?"Maybe. But not via "a phone call to the bank." There is a process to it. First, the debt collector must first prove that your debt is valid. Then you have to agree or disagree or ignore responsibility to pay it off. If the debt collector sues you for what they call a "judgment" and wins it -- then they'd have an official order from the court to have the bank freeze your account.Only then can your bank account be frozen.

Posted on August 12, 2009 at 3:27 am Oh I see, would I have time to respond to this lawsuit if ever? Can a debt collector obtain a judgment against me without me knowing it? Can the bank freeze my account without informing me?

Posted on August 12, 2009 at 3:46 am You'd definitely be served a notice but if for some reason that did not happen, you would have what they'd call a "default judgment" -- meaning you were unable to properly respond to the court summons or you weren't able to respond on time--I'm not sure, perhaps you should ask a lawyer about this particular issue--but generally, you should have a fair chance at defending yourself.A bank may freeze your account via default judgment. If you're wondering if you can have this reversed..I think you can...

Posted on August 12, 2009 at 3:52 am A judgment could either be wage garnishment, bank levy, or property lien.All of the above has to go through the court. Without a court order not one among those can be executed. So no debt collector can claim or even threaten the consumer with those judgments. If a debt collector does so...he/she would be in violation of the FDCPA laws. If the consumer reports an unfair practice by a debt collector, this debt collector can be fined $1,000.

Posted on August 12, 2009 at 4:05 am How can this bank freezing be avoided? Can it be avoided -- I mean before a consumer even receives a judgment, assuming that it's in the works, can the consumer empty his/her bank account and transfer her funds somewhere else?

Posted on August 12, 2009 at 4:10 am That's a tough question..And I'm not sure if that can be done. Prevent the bank from freezing an account that's due for judgment, I mean. But I suppose if the money is considered exempt --as in, if it's pension or insurance money and retirement benefits,etc.-- then yes it can be transferred? I'm not sure. The exemption may even depend on the state the consumer is in..

Posted on August 12, 2009 at 1:35 pm customer no. 5- emptying your bank account prior to the creditor obtaining and executing a judgment is one way to ensure that they won't get any money, if they decide to go for the levy. And ultimately it would render the judgment useless. keep in mind though, that typically unless you bank with the creditor who obtains the judgment against you, they will typically try to execute said judgment in the form of a wage garnishment first.

Posted on September 9, 2010 at 7:10 pm Same thing happen to me, but in 2004 they went to court to garnish i THOUGHT was my wages, well years later, i saved all my money up knowing there will be a lay off and i find out today 6 years later, they decided to act on the court order, now i have 0$ in the bank no job, lucky i had 40$ in my wallet and a almost a half tank of gasGranted its my own fault and i brought it on myself, but DAMN it sucks,  so i called everyone, and i found out they can only garnish my account once till they get another court order, so i can put money in there again if i had any and its ok till i get another paper in mail saying they going to court again, So learn from the pass EMPTY the account.So monday im job hunting, and going to get my credit report then on the 29th talking to a bankrupt person it cost 1300 to go bankrupt that i no of so far, so ya need a job now