Bank account hold - will bankruptcy remove this?

[newyorkvzw]

Hello, long time leecher - first post!

I have been considering bk for a while now and just figured it would just go away. Well today was a wakeup call, my bank account had a legal hold put on it bringin my balance of around $2,000 down to negative $1400. I called the bank and they gave me the name and number of a lawyer and case number. I skipped a court appearance from this lawyer and apparently they recieved a default judgement that gave them access to my bank account. My question is, when I file bk will the hold be released and will I be able to get my money out of the bank and under the mattress? If the hold can be released, how long does it usually take for the bank to release my money? I just deposited two checks both from wages. I have many other credit card related debt and now I am going to be going through with the bk. Anyone have any advice? I know I have not been smart about this so far but better late then never

[newyorkvzw]

I have done alot of searching on this forum and found only a couple instances of this happening. From what I understand the "hold" will be removed once I am filed. Can anyone confirm?

[AngelinaCatHub]

Remember, no legal advice here, but I think they beat you to the punch. Whatever you missed, gave them liberty in the wording of their Judgment and it was executed. I think you are out but they must now give you a release of that Judgment if it has been fully paid.

I don’t think bk now will afford an automatic stay in retrospect. Only Bill Clinton can tax backwards, and so the deal is done. Eeak it out for the next week and get your bk going. I hope I am wrong but I really do not think so. You cannot un blow a horn.

Please REAM me if I am proven wrong and I will apologize with glee. ‘Hub

[AngelinaCat]

Hi newyorkvzw: I am not understanding your question, and probably many of the other posters are puzzled as well.

BTW, welcome to the forum. You are not a leech, if you have gotten information.

Let me put down a couple of factoids as I understand them, and maybe these will help.

1. If you have any type loan, whether CC or mortgages or other, it is best to get the checking and savings accounts moved PRONTO, like YESTERDAY into a bank or Credit Union with wihich you have no prior affiliations. Because if you don't, something called 'Cross-Collateralization' comes into play where the bank or CU can seize money or freeze your account to satisfy your loans.

2. Once you got the notice to appear in court, you should have gone to contest. Some posters here hate that 'Hub and I say 'always go to court and speak up for yourself.' Because you can delay the proceedings, and maybe even reverse them. If you don't appear in court, you have given your creditor, essentially a blank check.

You didn't appear in court, therefore you got an automatic 'default judgment against you, and your bank account has been frozen/seized prior to garnishment.

Now, all that said, once you file for BK, the judgment SHOULD go away. 'Hub and I never let matters get to this point.

BTW, 'Hub just informed me he answered your question, so you have both barrels from the 'CAT' household.

Good luck to you!

[cool33097]

I agree with "Hub". I think because that was done prior to bk is a done deal. Bk should remove hold for future deposits, etc...but not for something that was done. You have to be in bk to be protected and you are not yet.
I also hope I am wrong. Good luck to you.

PS: I am not a lawyer. This is not a legal advice.

[allavdj]

At this point you just need to make sure your bank account is now included in the BK so it is discharged as well.

[newyorkvzw]

Thanks for all the replys!

I will include the agency who has the hold in my bk. Also, I am planning on contesting the hold because I just deposited a check from work the matching the majority of the money in the account. I didn't cash the check, I just gave it to the cashier so there will be record that it was wages. From what I understand only 25% of wages can be taken. I hoping the hold will be released, if not then what would the point of bk be? The bk law should cover this. I hope!

[ssdsco]

If the $2k hold impairs a BK excemption ($5k in lieu of homestead) you might be able to get the money back by filing BK. Something to check out, not sure if it applies in NY or your case.

[newyorkvzw]

Made an appointment today! The lawyer said that he can get the hold released if we act quickly, so that is very good news. I'll be starting another thread in the forum so everyone can follow my progress/ answer some questions! Thanks..