How Long Can a Court Freeze My Checking Account?

Courts can give creditors permission to freeze or seize a bank account. This stops account owners from withdrawing cash from the account, using debit cards or writing checks to pay bills. While a bank freeze creates a major inconvenience, freezes are often temporary and used to get a debtor's attention.

Reason for a Bank Freeze

Bank freezes occur in the aftermath of ignoring a creditor bill and refusing to satisfy the debt. Creditors typically use other methods, such as debt collection letters, to encourage payment of an old debt. But when debtors do not respond to such attempts, creditors can file a lawsuit and have a judge or the courts intervene to recover funds. Bank freezes, also called liens or seizures, place a hold on funds in the debtor's personal account, and after a holding period, creditors can receive these funds.

Judgments and Freeze

Creditors cannot acquire your bank funds without first getting a judgment against you. Acquiring a judgment will require going to court and providing evidence that you owe the funds. You can also appear at the court hearing to dispute or challenge claims made by a creditor. The court makes the final ruling, and you can receive a judgment if found guilty in court. Bank freezes occur only if you refuse to pay a judgment, in which the court orders a lien on your account.

Length of Bank Freezes

The length of a bank freeze or lien varies. Once a creditor recovers all funds owed, the court will contact your bank to lift the lien. You can also approach your creditor directly to pay off the balance or make arrangements for installment payments to lift a bank freeze earlier. Bank liens do not apply to exempt funds such as child support, alimony, worker's compensation, unemployment and retirement benefits. Notify the bank and creditor of exempt assets to access these funds.

Consideration

Appealing a bank seizure with the courts results in the immediate release of funds in the account. Go to the court and file papers to vacate or appeal the original judgment order. You'll have another day in court to dispute the unpaid debt. Filing bankruptcy is another method to stop a court-ordered bank lien. A bankruptcy filing ceases all collection attempts by creditors and protects you from creditor harassment.