Legal Question in Bankruptcy in West Virginia

Re: frozen bank account

The answer to your question involves timing and amount. The filing of the petition constitutes an injunction against seizure. That is, if the attachment or set-off was done after the filing, it is a violation of Section 341 of the Bankruptcy Code and could be contempt of court if the responsible party knew about the filing prior to doing so or refusing to release the seizure after knowledge. If the set-off or seizure occurred prior to filing, the creditor keeps the money, except if the amount is more than $600.00 and occurred within 90 days of filing. In that event the debtor has the right to get it back, but may have to file an adversary proceeding in the bankruptcy. Normally the creditor will surrender the money and not require a court order to do so because they may also have to pay fees.