Chase Put a Hold on My Bank Accounts and I Can’t File for Bankruptcy. – Gina
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Gina wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
Chase places a judgement against me for $3,700 for a credit card. I was going to include this in my bk. They got to me before I could file and put a legal hold against 3 bank accounts (joint checking, joint savings, personal checking). The hold was for $7,500 per account for a total of negative $22,500.
I had about $1,400 between the three accounts (this was from a hardship withdrawl I took from my 401k to pay my mortgage). I also had a pay check direct deposited 2 days later — which I can not access.
I live in IL. How are they allowed to hold all of my 401k withdrawal and my entire paycheck? Is there any way to get this money back?
I’ve changed my mind quickly and will be filing a 13. However, I don’t even have the $450 the lawyer needs for fees b/c they are holding all of my money.
Gina”
Dear Gina,
I think you need to discuss the situation with the bankruptcy attorney you have selected. They may be able to help.
I’ll ask a bankruptcy attorney friend to comment to give us some insight. I don’t know if the stay from bankruptcy will release the money held.
Big hug.
Source: Chase Put a Hold on My Bank Accounts and I Can’t File for Bankruptcy. – Gina
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When a creditor initiates a bank account levy, they typically have idea what types of funds are in the account. The simply ask the sheriff other other levying officer to got to the bank and levy on the funds.
If the issue is immediate access to the money, your bankruptcy attorney might be able to help you in state court by filing what is usually called a Claim of Exemption. You might be able to prove to the state court judge that the money in your bank account is protected under state or federal law.
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Steve Rhode Reply:
June 23rd, 2009 at 4:18 pm
Carl,
Thank you for answering this question.
Steve
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