When you attempt to take money out of the ATM or pay a bill online, you may be shocked to discover you cannot access your bank account. If this reflects your circumstances, your bank account has likely been frozen. This is often the result of those with debt they have not paid. This can be a complex situation, so understanding how to proceed is crucial to remedying these circumstances if creditors freeze your bank account. Keep reading to discover more about these issues and how a Los Angeles, California debt defense lawyer can help you navigate these challenging problems.
Why Is My Bank Account Frozen?
Discovering your bank account has been frozen can be harrowing, as you may have bills you must pay urgently. However, there is a reason your account has been locked from access. Generally, if you owe a debt and the creditor has filed a lawsuit against you, they may proceed and place a levy on your account. This is what freezes your account from your access.
If your account has been frozen, you can still deposit funds in the account, but you will be unable to make withdrawals or transfers. It’s also important to note that you may have exempt funds in your account, such as income from social security, these funds will not be garnished.
Am I Given Notice Before Creditors Freeze My Bank Account?
You may think you’ve found a loophole in your circumstances since you never received notice that your account would be frozen. However, it’s critical to understand your bank and the creditor requesting the freeze do not have to notify you before placing the hold on your account. Once the bank receives the judgment from the court, they must immediately freeze your account.
It is important to note that if you discover your bank account is frozen and you have not received a notice they have filed a lawsuit against you or obtained a judgment to freeze your account, this is not proper notice. However, if you received both of these notices, the creditor does not have to issue a third notice informing you they are placing a freeze on your account.
What Should I Do if My Account Is Locked?
If your bank account is frozen, it’s in your best interest to enlist the help of an experienced attorney as soon as possible to discuss the details of your circumstances. Unfortunately, many are unaware of their rights in these circumstances and may let the garnishment continue. Instead, an experienced attorney may be able to help you vacate the judgment and regain control of your funds.
At Los Angeles Legal Solutions, our team is dedicated to helping those in complex legal matters learn about their rights. Contact us today to learn how we can assist you if you discover your bank account has been frozen by a creditor.