Legal Question in Credit and Debt Law in New York

Re: Can someone freeze my assets if I owe them money?

Generally, unless someone gets a judgment against you, they cannot freeze your assets. There are exceptions, like if someone believes you are about to flee the jurisdiction or engaging in fraud, then they still would need a court order of attachment.

If someone has taken a judgment against you, the law allows the judgment creditor to issue a restraining notice to your bank (or anyone who has an assets of yours), which effectively prohibits transfer of the assets up to double the amount of the judgment. This is generally referred to as a "freeze" on the assets. The creditor can also execute on the asset, by delivering a writ of execution, generally referred to as garnishment. They can also take 10% of your wages by a garnishment. All these judgment collection remedies require notice be given to you, however. The precise rules are set forth in Article 52 of the New York Civil Practice Law and Rules (CPLR). There are also limitations, protections for the debtor, contained in the federal fair debt collection practices act, 42 USC 1697 (?). Generally, that law restricts debt collection practices, and affords a debtor some time to dispute a debt.