Once your debt has gone into collections, the most powerful way a creditor can retrieve the necessary funds is by freezing your bank account. Massive debt collection firms have the ability to find out where you work and bank. Once they have identified your financial institution and received a judgment, they can then send a citation from a third-party to inquire about your assets. Once your funds have been identified at that financial institution, the bank is required to freeze your account. They can freeze up to twice the amount owed for a brief period of time. This provides the creditors with enough time to file a motion for the funds to be transferred to the judgment creditor.
Other than having your wages garnished, there is very little more harrowing than having your bank account frozen. You are unable to retrieve the money you have worked hard for as day-to-day expenses go unaddressed. If this wasn’t enough, you may still have direct deposits flowing into the account on a weekly basis. This further increases the frozen amount and leaves you with little to no monies at your disposal.
Unfreezing Your Illinois Bank Account
Discovering that your account is frozen can come as a shock but it is important that you do not panic and take the necessary steps in unfreezing your bank account. You should inquire as to why your account was frozen. The bank may have suspected fraudulent activity by you or an unauthorized user. It is also possible that it could have been frozen as the result of an outstanding debt. You should contact your financial institution to unfreeze your account which is possible if it was frozen as a result of anything but a court order.
In many cases, transactions made at an unfamiliar location can be the reason behind your frozen account. If these transactions are legitimate, explain that you were on vacation or whatever the case may be and provide proof to support your claims. If your account was frozen as a result of a court order, they must notify you prior to freezing your account. You can have the judgment vacated if their is no record of you receiving a summons. If you successfully prove that you were not notified, you may be able to have the judgment removed. In that case, simply provide the necessary paperwork to the bank and they will unfreeze your account.
If your frozen account is not the result of overseas spending and you were made aware of the coming action, your account will remain frozen. This is when you need to reach out to an Illinois debt settlement attorney to discuss your options in unfreezing your account. The experienced non -bankruptcy attorneys at Benveniste Law Offices can negotiate terms that can unfreeze your account and lessen the total amount owed. Contact us today to speak with a frozen bank account attorney that can help you regain access to your funds without ever having to appear in court.