Legal Question in Credit and Debt Law in New York

Re: What is a restraining order against my bank accounts and is it legal?

It may or may not be a restraining order. For example, if a person believes and can show evidence that you will abscond with money before a full hearing on the merits, the party may go through a process known as "prejudgment attachment" which effects a freezing of assets. This is normally done with notice and an opportunity for hearing. Of course, where the order is entered and where the lawsuit originates has a lot to do with it.

You indicated that you are in MO, and the bank is in NY. If the lawsuit is in NY, you will want to seek out competent counsel in NY. If the lawsuit is in MO, you will need to seek out counsel in MO.

Sometimes a creditor will get a judgment by default, which means that they get a judgment by virtue of you not showing up to defend a case. When that happens there are ways to get a second chance to defend the case and reverse the default judgment; but this is something you'll need an attorney for.

If there is already a judgment, and this is a garnishment of your accounts, you should seek out a lawyer to help you as soon as possible. If this is a prejudgment attachment, you should seek out an attorney immediately to help forestall the seizure of the assets as there has to be very good evidence in order to get a prejudgment attachment.

Finally, bankruptcy works on almost all the debts there are, excepting certain debts owed to the government and debts arising out of fraud. But there are exceptions even to these general rules, so my best advice is to see an attorney immediately to help you sort through all this.

Good luck

Re: What is a restraining order against my bank accounts and is it legal?

Although the particular circumstances may give rise to a different reason, typically such a restraining notice would be issued after a judgment has been awarded in a lawsuit, either because of default or otherwise. You may have valid defenses to the restraing notice, which you should consider prior to filing for bankruptcy. In any case, you should consult with an attorney prior to taking any action. Any defenses you may have would, of course, be subject to the particular facts of your situation. If you would like to discuss this matter further, feel free to call me for a free phone consultation.

Note: This response is given for informational purposes only. No legal advice has been given and no attorney/client relationship has been established.