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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.

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โˆ™ 2006-03-04 17:10:38
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Q: If a collection agency freezes your bank account and on the next day you file for bankruptcy can they still freeze your money?
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Do you need to include account numbers for both the collection agency and the original creditor on your bankruptcy form?

Include the original account number if you are including the original creditor. Include the account number for the collection agency if you do not have the orignal creditor information and are including them as "Care Of" for service.


You were an authorized user on your mothers account not a card holder and after her bankruptcy a collection agency is harassing you?

If you are an authorized user then it is not your debt but your mother's debt. Your mother's bankruptcy discharged (wiped out) the debt in question. The collection agency is not allowed to collect from you as, again, it is not your debt. This would not be the case if you were a joint debtor with your mother.


Can a collection agency continue to report a collection account to the credit bureau after the account is sold to another collection agency?

No, once a collection agency relinquishes their claim to the account by selling it they must remove all negative trade lines related to that account from your credit reports. Hope this helps ST


Is it legal for a collection agency to purchase an account that has been discharged in Chapter 7 and report it as a charged off account?

As a general rule, "No". You need to be certain that the debt was actually discharged in the bankruptcy. If so, you should contact the attorney that handled the BK and have them forward the necessary information to the collection agency. Or you can send the documents yourself (COPIES of the discharge, etc.) and send them by registered mail to the agency.


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 my account be sold to another collection agency?

Yes.


Is it legal for a collection agency to try to collect on a debt that was released in bankruptcy and then sold to the collection agency by the original creditor bank?

Legal or not, this happens every day. Inform the collection agency and the original lender that this was included in the bankruptcy. The collection agency may want to see proof but usually the original lender will call and request that - that particular account be sent back. Make sure you get something in writing from the original lender--and that the collection agency REMOVES their account off your credit report--check your report 3 to 6 months later, to make sure this has been done. If you don't want to wait--send a copy of the signed letter on the lender's letterhead to all 3 collection agencies and wait for their response. Even though it will take about 30 days--this is the quickest way.


What does it mean when your credit report states that you have a paid closed collection account on you credit report?

The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.


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 collection agency put a lien on your bank account in sc?

It is possible for the collection agency to put a lien on your bank account. Before they can do this, they must go through the proper procedures first.


What is a Derogatory public record or collection?

== == A Deragatory record is an account that has had a history of late payments. A collection account is an account that was not paid on time or at all, and was closed by the creditor and sold to a collection agency.


Can a collection agency pull your credit?

No! ###### Yes if they have permissable perpose to do so (ie: Collection On Your Account)


Why original creditors sale accounts to a collection agency?

Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.


Can a collection agency increase interest on a charged off account?

Yes.


Can collection agency take money out of joint account in ct?

Yes they can.


How many times can a collection agency garnish your bank account?

Once a collection agency has gone through the procedure to garnish your bank account, they can do so as many times as necessary until the debt is paid.


In Colorado does a collection agency have the authority to levy my bank account without notifying me first?

A collection agency in any state would need to notify you first.


Once the delinquent account has been turned over to a collection agency the physicians office should do what?

Once a delinquent account has been turned over to a collection agency, the physician's office should stop billing.


If your account is sold to a collection agency how to do you find out when it was sold and how old the account is?

When the collection agency contacts you, they have to give you the opportunity to request information concerning the debt. You will have thirty days to send a written request to dispute the debt. And to ask for confirmation of the original creditor, the amount owed, when the account was remanded to the agency, etc.


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

it's possible


Do you have to pay the original balance on account that has been sold to collection agency?

yes


What collection agency does Comcast go through?

I believe its Eastern Account Systems


Where do you pay collection accounts that are reported on your credit report when the company is out of business or no longer handles the account that was reported for collection?

You pay the collection agency.


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.


What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?

Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.