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Bank Account Freeze

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Pandalegal

Junior Member
I have had a legal hold placed on my bank account for an old credit card that went to collections. My entire account has been frozen. I contacted the bank about having them send the funds required to pay off the debt judgement, but they told me I needed to contact the firm who is attempting to collect the debt and resolve the issue through them. I was told that only after the debt collection firm contacts the bank and lets them know the debt has been resolved will the bank unfreeze my account. The bank then gave me a phone number to contact the debt collection firm.

I contacted the firm who is attempting to collect on the debt and was asked if I could pay the amount owed. I said I could pay and I would authorize them to take the funds out of the frozen account (as there is far more money in the account than is needed to pay off the judgement). They said they could not take the funds out of the frozen account because it is frozen (obviously). I was told I would have to use other funds to pay off the debt. This is not an option for me because the only place I have enough funds to pay off the judgment is in the frozen account. I was then told that my only option would be to wait 30-45 days at which time the bank would send the funds to the court to pay off the judgment and then once the debt collection firm receives the funds from the court they can contact the bank and have the remaining funds unfrozen/released to me. So it seems my only option is to wait nearly two months for this issue to get resolved and there is no way to simply have the bank use my frozen funds to pay off the judgment any earlier.

Is this true? I would love to get this issue taken care of much sooner as all of my funds I need to pay bills are locked up in the frozen bank account. It doesn't seem fair or reasonable that they can freeze up several thousand dollars more than the judgment is worth and tell me I just have to wait two months and miss all kinds of other bill payments in the meantime...

Also, in case it matters the judgment is from a Georgia Court and the bank account was originally open in Georgia. Three years ago I moved from Georgia to California so I no longer reside in the state of Georgia.

Thank you for any help or guidance.
 


I don't really know the legal answer to your question, but my opinion is whether or not they are in the right to do it or they aren't, they have. Considering your circumstances and the promise that they will unfreeze the account upon receipt of payment I would:

1. Ask them to put their promise in writing.
2. Borrow the money from a friend or family member.
3. Pay the person back immediately once the account is unfrozen.

Seems like the path of least resistance...
 

single317dad

Senior Member
Are any of the funds in your account exempt? Social Security deposits, Veterans benefits, unemployment, and other funds may be exempt. Upon receiving proof of such, the plaintiff's attorney should release the attachment.

You could try to get the judgment vacated, particularly if it was a default.

http://www.garnishmentbook.com/wp-content/uploads/2012/09/Georgia-Garnishment-Laws-2012-Statutory-Supplement-v7.pdf
 

TigerD

Senior Member
Is this true?
Sort of. The bank freezes the funds at the direction of the court and the Sheriff. The funds will be frozen for up to 10 days. This allows you time to file exemptions and argue why the money should not be taken.

The bank will cut a check to the Sheriff for the amount of the levy and should unfreeze the balance of the account. Then the sheriff typically sits on the levied funds for up to two months before cutting a check to the judgment creditor.


I would love to get this issue taken care of much sooner as all of my funds I need to pay bills are locked up in the frozen bank account. It doesn't seem fair or reasonable that they can freeze up several thousand dollars more than the judgment is worth and tell me I just have to wait two months and miss all kinds of other bill payments in the meantime...
Then you should have paid the debt before it got to this point.

DC
 

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