There’s nothing scarier than trying to access your bank account only to realize you’ve been locked out. Despite trying to make a transfer, you still can not move your funds, causing panic. However, it may be the result of outstanding debt, as creditors can sue and place a freeze on your account in order to pressure you to make your payments. If your bank account has been frozen by debt collectors, ensuring you reach out to an attorney as soon as possible is essential. Keep reading to learn more about this process and discover how a Los Angeles, California debt defense attorney can help.
Why Is My Bank Account Frozen?
Unfortunately, many creditors will freeze accounts against their debtors in order to place pressure on you to make payments. While this seems like it would not be legal, it is a valid process that many creditors use. You will not receive a notice from your bank that your account is being frozen, as they must lock it immediately upon receiving the notification.
When your account is frozen, you will not be able to make transactions, pay bills, or withdraw any money, including using ATMs and writing checks. However, you will still be able to view your account, and payments, like direct deposits, can still be deposited in your account.
Are There Any Exemptions?
There are a few exemptions in which the money in your account is exempt from debt collection. This includes child support, social security, workers’ compensation, and veterans’ benefits.
You must file a claim of exemption within 15 days of the freeze and 20 days if you were served the notice by mail. It is vital to fill out this form as a creditor can receive a court order which allows them to levy funds directly from your bank account.
Do I Need an Attorney?
To put a freeze on your account, a creditor must obtain a judgment first. A creditor will not be able to freeze your account without first filing a lawsuit against you and then receiving a court judgment to freeze the account.
It’s essential to enlist the help of an attorney, as they can review the process the creditor went through before freezing your account. They may be able to uncover whether or not the bank account was frozen legally. If you were not notified there was a lawsuit against you, a lawyer can help prove your account was not frozen according to the law.
When you need help getting your bank account unfrozen, enlisting the guidance of a competent attorney is vital. At LA Legal Solutions, we have the experience necessary to help secure your funds. Reach out today to discuss the details of your case to learn how we can help you.