Legal Question in Bankruptcy in New York

Frozen Bank Accounts

Once bankruptcy documents are filed in the courts, does a creditor have the legal right to place a hold (freeze) on a debtors checking and/or savings account, and if a hold has been placed on a debtors checking and/or savings account AFTER their bankruptcy documents have been filed does the creditor have any legal options they can exercise to get a hold removed from their checking and/or savings account?


Asked on 3/26/03, 8:54 pm

1 Answer from Attorneys
Lance Spodek Lance Roger Spodek, P.C.

Re: Frozen Bank Accounts

No action can be taken by a creditor after the petition is filed.(Bankruptcy Code sec. 362(a)). If after the petition is filed a creditor takes action (or fails to remove a restraint on an account) that creditor may be held in contempt of court. A motion to the court will be necessary.

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Answered on 3/27/03, 8:13 am


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