Owning money to a creditor, especially when it’s money you just can’t pay, is a tricky situation, and if you don’t handle it correctly, it could turn out badly for you.
In fact, something you may not know is that, in some states and in some situations, your bank account could actually be frozen and the funds seized in order to pay off a creditor. In many states, when this happens, the only way to get the account “unfrozen” is by going through a complex and timely legal process.
While all of this may sound quite scary, rest assured that you do have some protection. Certain types of funds, for example, such as social security payments, are typically protected from being frozen. Plus, in some states, you have to have a judgment filed against you in order for any money to be taken from your account.
With all of that said, though, it’s best to know the specific laws in your state, especially if you owe a lot of money to creditors. Also, you should always contact a lawyer if an account is frozen or, better yet, if you think it may be frozen.
Sometimes, with the right legal help, you can stop a “freeze” from happening. And, if a freeze has already happened, you can ensure that your rights were properly respected and take action if they weren’t.
No matter what your worries or concerns related to frozen accounts or where you are in the process, do not hesitate to contact an experienced attorney for help and advice. Doing so could save your money and keep you from getting into an even worse financial situation.