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What can you do if you collect disability and a credit card company froze your checking account?

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Wiki User
2005-09-19 14:45:50
2005-09-19 14:45:50

A credit card company cannot arbitrarily seize a bank account. The creditor must file a lawsuit, win, be awarded a judgment and execute the judgment according to the laws of the debtor's state. All Social Security benefits and most private disability and pension benefits are exempt from creditor execution. However, in most cases the defendant (debtor) must let the court know the funds are exempt before they can be protected. The defendant and any joint account holder will need to petition the court for the release of all the exempt funds. In some cases of where both the defendant and the bank have been made aware of the exemption of the funds, then both can be held responsible for damages incurred by the debtor. The problems results when people commingle benefits and other income thereby making it necessary for the account(s) to be held until a judge rules on what if any monies the plaintiff is entitled. Generally a bank account cannot be "frozen" for more than 30 days.

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Until your state's statute of limitations runs out on that debt.

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