Legal Question in Credit and Debt Law in New York

Re: ny lien on bank acct

I am assuming that you found out there was a judgment against you, and filed an �Order to Show Cause to Vacate Judgment� (OTSC). The hearing on the OTSC is May 19, 2008, and the OTSC ordered that all collections activities stop pending the hearing.

The lien on your bank account (restraining order) may be a violation of the judge�s order. When someone violates a judge�s order, it is an act of contempt and the judge can sanction the party violating the order (typically by ordering the creditor to pay the attorney fees incurred in bringing the contempt motion).

Judge�s generally do not like to abuse their contempt power, and will typically not award sanctions without a showing of an intentional violation by the party in contempt. If the creditor can show they made an unintentional mistake its unlikely there would be sanctions.