Legal Question in Bankruptcy in Indiana

Frozen account

I have retained an attorney for bankruptcy but it has not yet been filed. An attorney who is sueing me for another company has frozen my checking account by the courts permission. What I would like to know is if my bankruptcy isn't filed before we go to court over this issue what will happen to my money in the checking account? There is not enough to cover the debit. And if my bankruptcy is filed do they get to keep the money in the checking account or do I get it back?


Asked on 8/21/03, 3:08 pm

1 Answer from Attorneys
Eric Southward Southward & Haggard

Re: Frozen account

The creditor has a lien against your bank account. They could take all the money that is frozen and apply it to the debt you owe them. If they don't do it, the freeze expires generally 60 days after it is ordered. Your bankruptcy filing will not change this. They have a lien on your account and that lien survives your bankruptcy. However, they need the Bankruptcy Court's permission to take the money. They generally don't. So often times, you can wait out the 60 days for the freeze to expire.

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Answered on 8/21/03, 7:13 pm


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