Frozen bank accounts

[msp4]

I wanted to know if anyone knows under what circumstances a debtor can freeze your checking account? This happened to us a few years ago and I'm always scared to death when we are behind on something that it will happen again. HELP!

[4jacks]

I always thought is was only when the creditor took you to court and won. The judge has to give them permission to take your money like that.

I could be wrong.

[msp4]

Its happened to us and its happened to a friend of mine at work. I'm just so paranoid now. I'm going to call the bank and see if they can tell me anything. Thanks for the input.

[4jacks]

http://www.indianajustice.org/Data/Docu ... eizure.pdf

http://www.nolo.com/article.cfm/objectI ... 8/155/QNA/

http://www.nls.org/consumer/frozen-accounts.htm


I'm 99% certain that they will need to win a court case against you in order to take the money from your bank account. Unless it's the IRS.

HOWEVER

It's always Better, to go on the offensive and just call them first. If you are dodging thier phone calls and not calling them back, they are going to do anything they can to get to you. They call your parents, your neighbors, it's really embarrassing. If you just call them it gets much better. Just talk calmly, tell them you will hang up if they yell at you or become abusive, and really just tell them where your at. Even better yet is just make regular small payments. If you make some kind of payments on a regular basis, it screws up thier software and most of the time they won't even call you. $10 every two weeks is well worth the hassle.

And then once you get in a better circumstance, and save up a little bit of money, you can settle the debt with them. Try to offer them half of the debt to settle the debt, and tell them you want the settlement in writing. Don't give them access to any bank accounts (they will ask). And of course, don't pay them off, till they give you a settlement in writing, and make sure you get a reciept.

Hope everything goes well for you, if you have any questions, let us know.

[KrozFan]

I'm 99% certain that they will need to win a court case against you in order to take the money from your bank account. Unless it's the IRS.

I think federally backed student loans can take money without a judgment also. I'm not 100% on that though.

[Tristan]

I'm 99% certain that they will need to win a court case against you in order to take the money from your bank account. Unless it's the IRS.

I think federally backed student loans can take money without a judgment also. I'm not 100% on that though.

That actually happened to my dad back in the '80s and '90s on the federal student loans for his doctorate, and it all went through the IRS.

[matt]

This happened to us a few years ago and I'm always scared to death when we are behind on something that it will happen again. HELP!

My advice is don't get behind on things. Spend less than you earn.