Legal Services

FROZEN BANK ACCOUNTS

Why is my bank account frozen and what can I do?
Your bank account has been frozen because you owe money to someone. Any creditor that has a judgment against you can have your bank account frozen. The creditor can actually freeze your account for up to twice the amount you owe. This means that you can't write any checks or make any withdrawals. If you make deposits, they will be frozen as well. Your account will continue to be frozen until you pay the entire amount you owe your creditor.

Can my creditor actually take the money out of my account?
Yes. However, the creditor can't take your money just because there is a restraining notice against your account. To actually take your money, the creditor needs to get a turnover order from a judge.
Can my creditor freeze my account if I have public benefits or assistance funds in there?
It depends. In some situations, public benefits and assistance are "exempt from execution." This includes SSI, SSD, public assistance, Veteran's Benefits, unemployment benefits, Social Security, or unemployment insurance
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What should I do if I receive public assistance or benefits and my account has been frozen?
If you received a notice from your bank that your account has been frozen, there should be a lawyer and phone number listed. If you didn't receive a notice, call your bank and ask for the lawyer's name and phone number. Call this lawyer and explain that you are receiving public assistance or benefits. Usually, you will have to send proof that you are on public assistance and you will have to send the past few months of bank statements. The lawyer will look at your account and will decide whether or not to un-freeze your account.
If you have written any checks after your account was frozen or if you have written any checks that have not cleared your account, you should contact the people you wrote the checks to. You should explain the situation and ask them not to cash the checks. Tell them that you will let them know when the funds are available so they can cash the checks.
You also need to make a plan for how you'll get by without a checking account until the matter is resolved. Don't make deposits and cancel your direct deposit. Find someone else who can cash your checks for you.

What if the lawyer won't unfreeze my account?
Call Nassau/Suffolk Law Services and we may be able to assist you. Please have your proof of public assistance and your bank statements with you.

This information letter was prepared by Neighborhood Legal Services in Buffalo with a grant from The Community Foundation for Greater Buffalo

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