Legal Question in Credit and Debt Law in New York

Re: frozen bank account

Collectors/collection agencies can't freeze bank accounts. They have only 2 tools in their tool belts: letters and calls. Lawyers freeze bank accounts. The way they do that is to get a judgment on behalf of their creditor client and issue a restraining notice. Large collection law firms routinely issue restraining notices electronically to all the major banks.

A bank that receives a restraining notice is required to freeze 2x the amount of the judgment. A restraint pursuant to a restraining notice is good for one year, unless the judgment is satisfied or vacated. A judgment creditor, through its attorneys can instruct a marshal or sheriff to levy a writ of execution against the restrained account (and take the money out to satisfy the judgment).

For further information regarding collections and litigation matters please free to visit the Frequently Asked Questions (FAQs) and Blog postings on our website at www.starrandstarr.com.

The foregoing is not intended as legal advice for your specific situation. Facts and circumstances not disclosed in your brief posting may materially affect your rights. You should consult with an attorney.

Best regards,