Why do bank accounts get frozen in New York?

Bank accounts in New York typically get frozen due to creditor judgments, tax authority actions from the IRS or New York State Department of Taxation and Finance, child support enforcement, bank errors, or suspected fraudulent activity. When this happens, you lose access to your funds until the freeze is resolved.

How can an attorney help unfreeze my bank account?

An attorney can help unfreeze your bank account through several strategies: vacating default judgments by proving improper service or presenting valid defenses, filing for bankruptcy to trigger the automatic stay that immediately stops collection activities, challenging restraining notices for procedural defects, filing motions to modify enforcement under CPLR §5240, claiming exemptions for protected funds, negotiating with creditors, and challenging the underlying judgment on various legal grounds.

What funds are exempt from being frozen in New York?

New York's Exempt Income Protection Act (EIPA) protects several types of funds from freezes and seizures, including Social Security benefits, Supplemental Security Income (SSI), veterans benefits, public assistance, child support payments received, unemployment insurance, workers' compensation benefits, public or private pensions, disability benefits, and 90% of wages earned within the last 60 days. These funds are legally protected, but you must properly assert these protections through the correct legal channels.

How quickly can a frozen bank account be unfrozen?

The timeline for unfreezing a bank account varies based on the legal strategy used. Filing for bankruptcy can unfreeze an account almost immediately due to the automatic stay. Vacating a default judgment often takes a few days to a couple of weeks. Challenging restraining notices can take 1-2 weeks. Direct creditor negotiations might resolve matters within days or weeks. It's crucial to act quickly, as the first 10 days after a freeze are the most effective period for filing motions to vacate judgments.

What happens if I ignore a bank account freeze?

Ignoring a bank account freeze can have serious consequences. After approximately 30 days, creditors may begin permanently transferring funds from your account. This could result in complete loss of your money, damage to your credit, additional legal actions against you, and potential escalation to other assets you own. It's critical to take immediate action with the help of an attorney to protect your funds and resolve the underlying issues.

Attorney For Unfreezing a Frozen Bank Account in New York

How We Unfreeze Bank Accounts in New York

1

Vacate Default Judgment

Overturn creditor judgments by proving improper service or valid defenses

2

Bankruptcy Filing

Immediately stop collection with automatic stay protection

3

Challenge Notices

Identify procedural errors to invalidate the freeze

4

Negotiate Settlement

Secure favorable terms for account release

Our legal team has successfully unfrozen bank accounts across New York using these proven strategies.

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How Our New York Attorneys Can Unfreeze Your Bank Account

Our Proven Legal Strategies

We employ several powerful legal approaches that have consistently helped our clients regain access to their frozen accounts:

Vacating default judgments with strategic motions
Filing bankruptcy petitions that trigger the automatic stay
Challenging procedurally defective restraining notices
Leveraging New York's CPLR §5240 to modify enforcement
Asserting exemption claims for protected funds

1. Vacating Default Judgments

Many bank account freezes in New York result from "default judgments" – court rulings made when someone doesn't respond to a lawsuit, often because they were never properly notified.

Our attorneys overturn these judgments by:

Demonstrating Improper Service: We investigate whether you were properly served with the lawsuit papers as required by New York's Civil Practice Law and Rules
Presenting Meritorious Defenses: We develop legal defenses showing that if you had responded to the lawsuit, you would have had valid arguments against the creditor's claims
Filing Strategic Motions: We prepare and file comprehensive motions to vacate that address all legal requirements

When our motion is successful, the court will lift the freeze on your bank account, often within days of filing.

2. Strategic Bankruptcy Filings

Another powerful tool we use to unfreeze accounts is filing for bankruptcy protection. The moment we file a bankruptcy petition, the "automatic stay" goes into effect, which:

Immediately stops all collection activities including account freezes
Legally requires creditors to release frozen funds
Provides broader protection from other collection efforts

For many clients, this approach not only unfreezes accounts but also provides a path to comprehensive debt relief. We carefully analyze your financial situation to determine if bankruptcy is the right option for your specific circumstances.

3. Challenging Restraining Notices

Our attorneys thoroughly examine restraining notices for procedural defects that can lead to immediate account release. In New York, creditors must strictly follow CPLR §5222 requirements when issuing restraining notices. We can invalidate freezes if:

Required Exemption Language is Missing: New York law mandates specific language about exemptions in restraining notices
Improper Service: The notice wasn't properly served on all required parties
Scope Violations: The freeze exceeds what's legally permitted under New York law
Procedural Defects: Other technical violations in the restraining process

These challenges can result in the immediate release of your funds without lengthy litigation.

4. Motion to Modify Enforcement

For clients with complex financial situations, we leverage New York's CPLR §5240, which grants courts broad discretion to "deny, limit, condition, regulate, extend or modify the use of any enforcement procedure."

This powerful provision allows our attorneys to request that the court modify or terminate an account freeze based on your specific circumstances and equitable considerations, such as:

Demonstrating financial hardship
Showing the freeze is disproportionate to the debt
Proving the freeze impacts innocent third parties
Establishing that the freeze prevents payment of necessary expenses

This approach requires skilled legal advocacy but can be highly effective when other methods aren't applicable.

5. Exempt Fund Protection

Many New Yorkers don't realize that certain funds are legally protected from freezes and seizures. Our attorneys can file exemption claims to protect funds such as:

Social Security benefits
Supplemental Security Income (SSI)
Veterans benefits
Public assistance
Child support payments received
Unemployment insurance
Workers' compensation benefits
Public or private pensions
Disability benefits
90% of your wages earned within the last 60 days

New York's Exempt Income Protection Act provides important protections for these funds—but only if you properly assert these protections through the correct legal channels.

6. Challenging Underlying Judgments

Beyond vacating default judgments, our attorneys can challenge judgments on numerous other legal grounds that may not be immediately obvious:

Satisfaction of the Judgment: Demonstrating the judgment has already been paid in full
Judgment Expiration: New York judgments expire after 20 years
Prior Bankruptcy Discharge: Showing the debt was discharged in a previous bankruptcy
Jurisdictional Issues: Establishing the court lacked proper jurisdiction
Identity Confusion: Proving the judgment was meant for someone with a similar name

These sophisticated challenges often require in-depth legal research and skilled advocacy, which our attorneys provide.

Understanding New York's Bank Account Freeze Laws

New York's Unique Legal Framework

New York follows specific laws that govern how and when accounts can be frozen:

CPLR Article 52

New York's Civil Practice Law and Rules outlines the procedures creditors must follow to enforce judgments, including account freezes

Exempt Income Protection Act

This New York law protects certain funds from being frozen, including the first $2,850 in your account if it contains directly deposited exempt benefits

Restraining Notice Requirements

Creditors must provide specific notices and follow strict procedures before freezing accounts

Violations of these requirements can provide grounds for immediately unfreezing your account—but only if you have an attorney who knows how to identify and leverage these violations.

Frozen Bank Account FAQ

Common questions about frozen bank accounts in New York, based on our extensive experience helping clients through this process.

Can you really unfreeze my bank account?

Yes, in many cases we are able to unfreeze bank accounts by vacating default judgments, filing for bankruptcy, challenging restraining notices, or negotiating with creditors. Every case is unique, but our experience and legal strategies have helped many New Yorkers regain access to their funds.

How long does it take to unfreeze an account?

The timeline depends on the legal strategy used. Bankruptcy can unfreeze an account almost immediately. Vacating a default judgment or challenging a restraining notice can take a few days to a couple of weeks. Negotiated settlements may resolve matters within days. Acting quickly is critical.

What funds are protected from being frozen?

Funds such as Social Security, SSI, veterans benefits, public assistance, child support, unemployment, workers' compensation, pensions, disability, and 90% of recent wages are protected by New York's Exempt Income Protection Act. We can help assert your rights to these funds.

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Attorney For Unfreezing a Frozen Bank Account
in New York