Best Answer

Before an individual's bank account can be levied he or she must be sued by the creditor. If the creditor wins the suit (they almost always will) a judgment will be awarded and the judgment can then be used as a bank account levy. Bank accounts are 'frozen' by the court when the account is jointly held and only one account holder is named as the judgment debtor. This action allows the non debtor to provide proof as to the amount of funds belonging to them.

User Avatar

Wiki User

โˆ™ 2008-08-01 13:54:32
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can a collection agency 'freeze' your bank account for credit card debt in Texas?
Write your answer...
Related questions

Can a collection agency freeze your bank account in NC?

No, it is illegal for a collection agency to garnish or freeze your account for any reason. The only way your account can be garnishes is if you owe taxes or child support. If a collection agency threatens to do this, tell them that you are aware of the Credit Reporting Laws on this matter (there is legal ground for this matter).

Can the collection agency freeze your bank acct in Fla?

No. A collection agency can not freeze your bank account. Only a judge could do that.

Can a collection agency freeze your business account s corp for personal credit card?

Absolutely not. An S corporation specifically protects your personal finances.

Can a collection agency freeze your bank account in New Mexico?

it's possible

Can a collection agency freeze your bank account in NY?

If you are sued, then yes. First, the collection agency must try to collect from you. Then they can sue you if you don't pay. If they win, the judge can issue a judgment against you. And that is how they can freeze your bank account.

Can a collection agency freeze bank account in ca without you being notified?

Agency cant freeze your bank account at all, They can go to court asking to freeze your account, then a court order only can freeze you account, an account cant be freezed by any third party order.

Can a collection agency 'freeze' your bank account for credit card debt in Maryland?

Not unless the take you to court, and you lose. If you were sued, and you didn't show up, you lost. Once a judge finds in the collectors favor, they can move to have your wages garnished, including funds in your bank account.

Can collection companies freeze bank accounts?

Yes, a collection agency can freeze your bank account, but only under certain circumstances. A freeze can only occur after the collector obtains a judgment. They would have to go to court to get the judgment against you.

Can a collection agency freeze my bank account?

They can't freeze the account initially. First, they must try to collect the debt from you. Then, they can sue you if you do not pay. If they win a judgment against you, they can freeze the bank account. Sometimes collection agencies sue people for debt that is not their or that is past the statute of limitations. Learn your rights by reading up on the FDCPA.

Can collection agencies freeze your savings account?

No, collection agencies do not have any right to freeze your savings account. Only banks have the right to freeze your account but depends on the nature of the default.

Can a collection agency freeze a bank account in Pennsylvania?

Collection agencies do not and cannot freeze accounts in any state. Only the courts can do this. However, if a lender has a valid judgment against you for a bad debt, any collection agency they hire to recover it can serve your bank with an order of garnishee and attach the assets in the accounts you have there.

Can collection agency freeze checking account if you have survivor's benefits?

No, only if the survivor benefits are your only source of income they are non garnishable.

Can a collection agency freeze your bank account if receiving unemployment?

They can freeze the account, but thet can't keep your unemployment income. You have to prove to them that it is unemployment income by getting copies of your bank statements showing the unemployment income.

Can collection agency freeze a joint checking account?

Pre-judgment garnishment is generally not available in Texas. I don't know about other states.

How does a creditor know where and what bank account to freeze?

The banks send your information to the major credit reporting agencies. In order to freeze your bank account the creditor must obtain a court order to collect on a debt from you. With that court order they can get your account information from the bank to process the freeze/collection.

Can collection judgment freeze your bank account?

Yes, a collection judgment can freeze a bank account. A court order is required. If a bank account is frozen, it cannot be used until the debt is paid.

Can a collection agency freeze a joint account in the state of North Carolina?

In the state of North Carolina, it is very hard to seize a bank account. When an account is joint, it can not be seized unless the debt is the debt of both parties.

Can a collection agency freeze your account if your only income is socialsecurity?

No they can't, it is considered non-garnishable income but make sure your mank knows that this income is from SS.

Can a collection agency freeze your bank account if you get Social Security checks in the state of Minnesota?

No. SS benefits are protected from creditor garnishment under federal law.

How is it possible for a collection agency to freeze your checking account with out giving proper notice and how do you go about taking care of this matter?

Collection agencies do not normally have that power without a court order. You should go see a lawyer ASAP.

If a collection agency freezes your bank account and on the next day you file for bankruptcy can they still freeze your money?

A collection agency, or any party, can only freeze your bank account IF they have sued your first and won a judgment against you. If you file for bankruptcy, it will not immediately release the levy on the account. The court that rendered the judgment must be notified of the bankruptcy filing, as well as the judgment creditor. The account could remain frozen until the outcome of your bankruptcy. If your bankruptcy, and the judgment debt is discharged, then the bank account must be released. It is possible to release a levy before discharge, but it will usually require the bankruptcy attorney to do it.

Can a collection company freeze bank accounts that contain disability pension and social security checks in Pennsylvania?

A collection agency cannot seize a bank account period. ALL SS benefits are exempt from creditors. A collection agency cannot threaten to take your property nor do they have the power to do so. They can inform you that the account is being referred to a collection attorney who can pursue legal action. Be that as it may, your bank accounts are safe. You can inform the agency and the bank in no uncertain terms if they attempt such an action, you are prepared to sue for damages. The only way to stop collection bullies, is to play offense not defense.

Can a collections agency freeze bank account for medical bills?

Not without a court order.

Can you close your credit card account and continue to make payments?

No, what usaully takes place is that the credit card company freeze your credit card account and you continue to make payments

Can a credit card company freeze your account with them without notice?

yes they can, if is up to them