Debt Collection
Banking
Commercial Bank and Checking Accounts

How long can debt collectors keep your bank account frozen?

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2006-04-04 03:06:16
2006-04-04 03:06:16

Debt collectors cannot "freeze" a person's bank account, that can only be done by order of the court. Generally a court will hold the account no longer than 30 days when making a decision as to what if any of the funds contained are subject to a judgment creditor levy.

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Related Questions


NEVER give your bank account information nor your employment information to debt collectors..

Debt collectors cannot garnish the SSD checks, but they can attach bank accounts. It's best to keep them separate.

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.

Typically any bank account you open will have your social security number on it, which is how your debts are listed, which is how any new account you open will be frozen also. It doesn't matter where you are (at least in the US), it will happen, especially if it is a debt to the IRS. You may want to talk to an attorney if you need to open an account.

No, a debt collector cannot take funds without a garnishment order or court order. No one has access to your bank account but you. Sometimes, the bank account will be frozen before decision is made by the court.

In Colorado it is possible for a debt collector to levy a bank account. It is necessary for the approval from a court in order for a debt collector to place a levy on the bank account.

AnswerTry to vacate the judgment through the court that entered the judgment. This may temporarily release your bank account funds if you were not properly served.

If a joint account with a wife had been frozen because of a debt she owed, a husband's personal account can also be frozen, but it depends on when the debt was acquired and who the money is owed to. A legal professional will be able to advise a person about the laws of their state as it may differ about community property laws.

A joint account can be frozen by a judgment creditor of one owner. That can cause not only an indeterminate period of inconvenience for the non-debtor owner but also may result in the loss of half of the funds in the account. You should not open a joint account with another person who has a history of debt problems. You can read more about frozen bank accounts in general at the link provided below.

If your bank account has been seized because of a debt you owe, you should call and work out a payment arrangement with the creditor. You should also start a new bank account.

Bank accounts can only be "frozen" by a court order. A lender can request a court to take such action if it can be proven that the debt has plans to remove the funds from such accounts. Bank accounts can also be 'frozen' when they are jointly held so the non debtor account holder can provide documents to the court showing the portion of the funds in the account that belong to them and are exempt from a judgment creditor.

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.

Yes. A joint bank account is an equal property of all the parties involved in the joint account. So if one of the parties who jointly hold an account owes a debt to the bank, the bank can lay claim to the cash he/she has in an account they jointly hold with another person.

No, and generally debt collectors never leave their office.

If your account was garnished by a govt agency(i.e. the IRS). Then the IRS needs to put that money back into your account not the bank.

Yes, a bank can freeze an account for a variety of reasons. They often do this when they feel their may be a security risk.

Yes, you are probably overdrawn in your bank account as well.

Debt collectors can indeed take settlement money from someone if they owe debt. These collectors may take from what they need to.

I have a charged off account at the bank of 146.00 how do I pay that off when I'm unemployed I have a charged off account at the bank of 146.00 how do I pay that off when I'm unemployed

That depends on the nature of the debt and the laws of your state. You should seek the advice of an attorney to discuss your exposure.

yes the debt does not go away, the bank simply sold the debt to an outside collection agency.

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.


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