When a person falls into debt with creditors, he may be the subject of various kinds of aggressive collection methods. While some of these methods are relatively benign -- for example, repeated calls and emails -- others may involve the forcible seizure of the due funds. Some debtors may be subject to seizure of their bank accounts, which can occur if a judge hearing the creditor's case orders it.
Civil Judgment
Funds cannot be seized from a bank account without the explicit permission of a civil court judge. A bank is not allowed to provide funds to an account holder's creditors unless a judge orders it to do so. To get the approval of a judge, the creditor must file suit in civil court and win damages from the debtor. If the debtor doesn't pay the damages, the judge can order the seizure.
Bank Account Seizure
If a judge receives a motion to seize the funds within a bank account and honors it, then the creditor will be allowed to present the debtor's bank with a court order demanding that the debtor's account be frozen. When an account is frozen, a debtor can no longer withdraw from or transfer money out of it. Generally, after the account is frozen, the creditor will be allowed to draw funds from it.
Considerations
In many cases, a judge will not allow a creditor to seize a bank account. Many states have laws that forbid the seizure of certain bank accounts. For example, many states require that the debtor first pass a means test before his account can be seized. This means that the debtor must earn a certain amount of money, or his bank account will be ineligible for seizure.
Appeal
Before an account is seized, the debtor may have a chance to protest the seizure. If he does not, he will be given a chance to appeal it. Depending on state and federal law, the debtor can appeal the seizure on various grounds. For example, a bank account that contains federal benefits, such as Social Security payments, cannot be seized. If an appeal is granted, then the seizure will be lifted.
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