When you try to make a withdrawal from your checking or savings, you may be horrified to learn that your bank account is frozen. This can be incredibly unsettling and make it nearly impossible to make payments on time. However, this is often the result of missed payments or a creditor who has taken legal action against you. If you are the victim of a bank freeze, this blog explores what you should know about these matters and why it’s imperative to connect with a San Diego consumer lawyer who can assist you through these complicated issues by exploring your legal options.
What Is a Bank Freeze?
A bank freeze occurs when a creditor has obtained a court-ordered judgment against you for funds you owe. Essentially, when you owe money and have not made payments, a creditor will file a lawsuit against you for the money you owe. If you do not respond, they may receive a default judgment that essentially grants the creditor the terms they requested in the petition filed against you. If you still do not make payments, they can go to the judge and request a bank levy, or freeze on your account.
When your account is frozen, you will be unable to make transactions. This includes withdrawals and paying bills. However, you will still be able to view the funds in your account, and the freeze will not prevent direct deposits.
Unfortunately, many only discover that their bank account is frozen when they try to withdraw funds or make a bill payment. You will not receive a notice that your account is frozen, as the bank must immediately lock your account as soon as they receive the court order from your creditor.
What Can I Do if My Bank Account is Frozen?
First and foremost, it’s important to understand that when a creditor places a freeze on your bank account, it is entirely legal. Though it may seem like blocking your hard-earned funds should be against the law, this is a process many creditors use to recover the funds they are owed. As such, it’s important to understand your options to release your funds.
Your first option is to file a Claim of Exemption, which allows you to protect certain funds from being levied. This includes Social Security, unemployment, disability, or child support. Additionally, California allows you to protect funds necessary for you and your family. However, you only have 15 days to file this claim.
It’s imperative to connect with an experienced consumer defense attorney who can assist you through these challenging matters. Not only can your attorney help you file the necessary form to protect your funds, but they can also determine whether or not the creditor took the correct legal steps to warrant freezing your account. For example, they may not have served you with notice of the lawsuit against you, meaning you had no idea that you were even in legal trouble.
At Barthel Legal, our dedicated legal team will do everything in our power to assist you through these challenging legal times. We understand how nerve-wracking it can be to have your money held from you, which is why we will explore all possible avenues to help you recover your funds. Contact our team today to learn more.
