The most common reason individuals in New York experience a restraint on
their bank account is because a creditor has obtained a judgment against
them and is enforcing it against their bank account.
What does this mean in plain English? It means that you have been sued
and lost and as a result the court entered a judgment against you for
the amount claimed to be due to the creditor. Now, that creditor may be
trying to collect on this money judgment by serving legal papers on your
bank requiring it to restrain or "freeze" your bank account.
This allows the creditor to take money directly from your account.
In New York State, a creditor cannot take all your money and also cannot
take certain kinds of "exempt" funds. So, what can you do? One
option is to contact a bankruptcy attorney and discuss whether your situation
is appropriate for bankruptcy. Once you file bankruptcy, any restraints
on your account can be lifted and if you are within a certain range of
time, you may even be able to recover any money that has been removed
from your account.
Of course, the best course of action is not to wait until things have gone
this far. In fact, you should act as soon as possible after becoming aware
of a lawsuit filed against you so you can evaluate your options before
too much time passes or before what may be your last remaining resources
are depleted. You will need funds to pay your bankruptcy attorney and
if you are without any resources whatsoever, you may not be able to obtain relief.
Questions or interested in a consultation about your case? Email Natasha
Meruelo, Esq. at firstname.lastname@example.org or call me at (914) 517-7565. The
first consultation is always free of charge.
Natasha Meruelo, Esq. is located at 445 Hamilton Avenue, Suite 1102, White
Plains, NY 10601.