QUESTION
Will filing bankruptcy unfreeze my bank accounts?
Asked on Nov 09th, 2011 on Bankruptcy - Colorado
More details to this question:
I am having financial difficulties and have not been able to pay any of my credit cards. Can the credit card company seize my bank account for collection and if so how long before they consider doing this? Will filing bankruptcy help?
19 ANSWERS
judith runyon
Yes.
Answered on Jun 02nd, 2013 at 9:54 PM
William C. Gosnell
Yes.
Answered on Jun 02nd, 2013 at 9:52 PM
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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Yes they can freeze your account after they get a judgement against you. And yes, filing bankruptcy will stop them from suing you, freezing your accounts or garnishing you.
Answered on Nov 14th, 2011 at 11:47 AM
Filing bankruptcy imposes an "automatic stay" against collection efforts which will unfreeze held funds on deposit.
Answered on Nov 11th, 2011 at 12:32 AM
2 Awards
Filing a bankruptcy will stop creditors from attaching money in your accounts.
Answered on Nov 10th, 2011 at 11:44 PM
William P. Turner
The day you file bankruptcy, an automatic stay goes into effect that bars all creditors from doing anything to collect a debt from you. Credit card creditors could only seize your bank account after they sued you and obtained a judgment, but even after a judgment the stay bars any further attempts to collect on said judgment by say trying to garnish your bank account. So, filing bankruptcy would clearly stop that from happening.
Answered on Nov 10th, 2011 at 1:01 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Filing a bankruptcy will stop any garnishment of a bank account.
Answered on Nov 10th, 2011 at 10:40 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes. Creditors must release the garnishment on your bank account as soon as you file.
Answered on Nov 10th, 2011 at 10:27 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Will filing bankruptcy unfreeze my bank accounts? - bankruptcy will stop any wage garnishments or other seizures in most cases ....... You will have access to the exempt portions of your bank accounts. Question Detail: I am having financial difficulties and have not been able to pay any of my credit cards. Can the credit card company seize my bank account for collection and if so how long before they consider doing this? Will filing bankruptcy help? - the credit card company must SUE you first and get a judgment BEFORE they can commence collection actions on the judgment; credit card companies are Schedule F, Unsecured, NON-priority debts that can be easily discharged in bankruptcy.
Answered on Nov 10th, 2011 at 10:16 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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If there are judgments against you in lawsuits filed against you by credit card companies and other creditors then they can immediately levy your bank accounts and take all the money in the account even if some of the money belongs to a co-owner of the account. They can also garnish your wages and take up to 25% of the gross wages and file a lien in each county you own any real estate so that you will not be able to refinance or sell the property. If there is any equity in the property then the creditor can have the property sold to satisfy the debt. Finally, you can be ordered to appear in court to be examined under oath about where you have accounts, real estate, cash, jewelry and any other property or thing of value and may be forced to bring in documents demanded, including tax returns and account statements. If you show up with jewelry or other things of value or cash then those things can be taken on the spot. If you are served with an order of examination and don't show up in court for the examination then you can be arrested by the police on a civil benc warrant where found and detained until you comply with the court order to be examined by the creditor that requested the order.
Answered on Nov 10th, 2011 at 9:54 AM
Glen Edward Ashman
Bankruptcy stops almost everything creditors can do. See a lawyer ASAP.
Answered on Nov 10th, 2011 at 9:26 AM
Filing for bankruptcy will put a complete stop to all unsecured creditors' (like credit cards) attempts to collect from you. Upon being granted a Chapter 7 discharge from the Bankruptcy Court your obligation to pay on discharged debts will be gone. A Chapter 13 bankruptcy will probably reduce your debt and will put you on a manageable payment plan. Depending upon your specific situation, bankruptcy may be a good option for you. You should consult with a bankruptcy attorney to determine if it is right for you.
Answered on Nov 10th, 2011 at 9:05 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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A bank credit card can be offset by money in accounts of that bank. Otherwise, a credit card company would have to have a judgment to levy a bank account.
Answered on Nov 10th, 2011 at 12:50 AM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Robert Parkinson Taylor
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Credit card companies can't freeze/seize your accounts unless they've sued you and got a judgment OR the credit card is from your bank. For example, if you have a Wells Fargo checking account and a Wells Fargo Visa, and you stop paying your Visa, Wells can take the money out of your account. Therefore, do not keep accounts with banks if you are behind on their credit cards.
Answered on Nov 10th, 2011 at 12:19 AM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Christine A. Wilton
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The credit card company can seize your bank account if they are the same banking institution. I suggest that you do not bank where you owe. Otherwise, the only way a creditor can levy your bank account is if they have a judgment in a court of law against you. This means they must sue you first.
Answered on Nov 10th, 2011 at 12:01 AM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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The credit card companies cannot freeze your accounts without a lawsuit and judgment. However, some banks have been wiping out accounts if you have credit cards with them. For example, if you have a Bank of America credit card and a Bank of America checking account, they will collect from the checking account. Once you file bankruptcy, there will be an automatic stay and all collection actions must cease.
Answered on Nov 10th, 2011 at 12:01 AM
Bankruptcy Attorney serving Atlanta, GA
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Jakob-Barnes Law Firm, LLC
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Yes a creditor can seize your bank account. First the creditor has to sue you and get a judgment. Once they have a judgment, they can file a garnishment on your bank account or wages. A bankruptcy will stop this but it is best to file the bankruptcy before it gets this far.
Answered on Nov 09th, 2011 at 11:31 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Generally speaking, filing bankruptcy will unfreeze your bank accounts (release a bank levy). Whether or not you will get the funds back might depend on when the funds are frozen, and whether you can claim them exempt in bankruptcy. If you want a more detailed explanation, please call me. There is no charge for a telephone consultation.
Answered on Nov 09th, 2011 at 11:31 PM
Daniel James Wilson
First, if you have a bank account and a credit card with the same bank, move your money to another bank. Creditors will eventually sue you in state court, get a judgment and a garnishment order. They will garnish your bank accounts and paychecks.
Answered on Nov 09th, 2011 at 10:34 PM