Can a creditor threaten to close my bank account after only one warning? 24 Answers as of February 17, 2012

They can freeze the money in the account. They cannot close the account.

Before a creditor can attach a bank account, they must first sue you and win a judgment. Then they can attach without any notice at all. When you are notifiued that the attachment has occurred, you may request a hearing. At this hearing you may NOT contest the actual judgment. That should be done when the lawsuit is first filed. All you are allowed to present is information as to the source of the funds in the attached account. If you can show that the account is 100% Soacial Security, pension, od Unemployment Compensation, then the judge will release the attachment. Otherwise, you will lose the money in the account. So do not delay. If your money is not entirely exempt, it sounds like you need a bankruptcy. Go now. Before they take your money. Good luck.

The only way a creditor can "freeze" your bank account is to sue you, and then file a garnishment. However, if you borrow money from a bank, and then default on a loan, if you have funds on deposit there, the bank can stop funds out of your account to cover the payments on the defaulted loan. If the creditor was not a bank, you should consult an attorney. Some of these type of collection activities may violate the Fair Debt Collection Practices Act.

Yes you can file for bankruptcy now to prevent any freezing of your accounts. Generally the lender has to get a judgment first before they can freeze your account, otherwise they are probably just threatening you to scare you to pay.

Generally a creditor cannot "freeze" your bank account unless they are the bank where your account is and you haven't been paying your loan to them. Usually they have to be a credit union, at least in Michigan, because that is who cross collateralizes your accounts (get a VISA and if you don't make the payments, I can take it out of your checking account). Any other creditor has to get a judgment and then garnish your account to take any money out or garnish your wages. But if you have reached this point, I would make an appointment with an experienced bankruptcy attorney and look at your options of filing bankruptcy or settling with the creditor. Good Luck!

No, a creditor has to obtain a judgment against you and then have the court issue a writ of garnishment. The creditor is just trying to scare you into paying. However, the creditor will eventually take legal action. Thus, you would be wise to consult with a debt relief attorney to see if bankruptcy is a good option for you.

A creditor is prohibited from taking such action, at least in Ohio, without first obtaining a Judgment in a municipal or common pleas court where you reside. Wage Garnishment is a separate post-judgment legal proceeding and you have to be served with notice on that. Post Judgment a creditor CAN file for a bank attachment and this can occur without your being notified, a sort of nasty consequence of letting a matter proceed to judgment. Filing a bankruptcy case would of course stop this process, but you should consult with an attorney first to determine your best option under YOUR circumstances.

The creditor can't close your bank account but can freeze the money in it if it has a judgment against you. You can be proactive and file a bankruptcy before that happens. Once the bankruptcy is filed the creditor can no longer take any action against you to collect the debt.

A creditor with a judgement can seize your bank account with no warning. If you have debt problems, see a lawyer to weigh your options.

A creditor can not garnish a bank account unless he has a judgment against you if the creditor is not the same as the bank that is threatening you. It sounds like the debt collector may be violating state and/or federal debt collection practices act. You should contact an attorney who sues debt collectors who the fair debt collection practices act to discuss whether the creditor has violated any laws.

Filing for Bankruptcy will stop the creditor from doing whatever it is planning to do. That is the fundamental purpose of filing. However, your question describes a threat, which is very different from an action. If the creditor is a bank where you have money on deposit, then the creditor is threatening what is known as a "set off". You owe the bank money because you are in debt. The bank owes you money because you have money on deposit there. The bank is threatening to set off one debt against the other. Since you likely owe the bank more than you have on deposit with the bank, that means that the bank is ultimately threatening to take your entire account. If the creditor is one with which you do not have a banking relationship, then it is in a weaker position. If it wants to seize a bank account, then it must sue you in court and "trustee process" your bank account. This is more complicated and more expensive for the bank. There are limitations on what the bank can take. The process is subject to judicial oversight and judicial safeguards. Banks certainly can and do seize bank accounts, but not as often as they threaten to. However, once you file bankruptcy, the bank cannot do any of the things which I have described. Also, if all the bank has done is "freeze" the account through trustee process, it may be possible to unfreeze the account through bankruptcy.

A creditor has to sue you first and obtain a judgment before freezing your account (unless you owe the bank the money). So, the creditor is probably just trying to scare you and tell you that they will freeze your accounts. You should have time to file a bankruptcy and get rid off the debt.

Yes. I would consider bankruptcy soon.

They can't do that absent a court order. However, if you do not have the ability to take care of your debt, maybe bankruptcy is the best option for you. If you dile for bankruptcy, they won't be able to go after you or initiate any kind of judicial process any more.