What can I do if my brokerage account was frozen by a trustee? 12 Answers as of September 03, 2014

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
More information is needed. For starters, call the Trustee and ask why the account was frozen. If enough money is involved, pay an experienced BK attorney for his or her advice.
Answer Applies to: Colorado
Replied: 9/3/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
The fling of a bankruptcy petition creates an automatic stay or stop to prevent and collection activities by any creditor. You would have to more specific when referring to a trustee freezing your assets. If some of your assets are non-exempt they would be part of the bankruptcy estate which is administered by the trustee.
Answer Applies to: Minnesota
Replied: 9/1/2014
D.J. Rausa, Attorney at Law | D.J. Rausa
Have your attorney speak with the trustee directly. If you are representing yourself, speak with the trustee to see if you can negotiate a settlement with the trustee.
Answer Applies to: California
Replied: 8/29/2014
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
Contact your attorney immediately. If you filed without an attorney, I'm afraid that this may prove to be a costly mistake. Go see a bankruptcy attorney immediately. Perhaps there may still be some damage control that can help.
Answer Applies to: California
Replied: 8/29/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Depends why it was frozen. You can file a motion to abandon claims if you are justified.
Answer Applies to: New York
Replied: 8/29/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Nothing. It sounds like it is not exempt. The trustee will take it unless you exempted it.
    Answer Applies to: Nevada
    Replied: 8/29/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    If you listed and exempted the brokerage account in your bankruptcy petition on Schedule C, you can contact the Trustee to see why the account has been frozen, and if you aren't satisfied with the response, you can seek an OSC from the court. If you didn't list or exempt the brokerage account, you have no one to blame but yourself this is the bankruptcy process.
    Answer Applies to: Nevada
    Replied: 8/29/2014
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    Talk to your lawyer, and if you don't have a bankruptcy lawyer, get one. This is not the kind of situation that online advice will help. You haven't given any facts, but it sounds like you are in a Chapter 7 Bankruptcy, and the trustee believes you cannot protect, or exempt, the account. If that is true, the trustee can possibly liquidate the account to pay your creditors. Call a bankruptcy lawyer now.
    Answer Applies to: Illinois
    Replied: 8/29/2014
    Barnhart Law Office
    Barnhart Law Office | Bruce C Barnhart
    When a debtor files a chapter 7 bankruptcy, all of that persons assets become property of the bankruptcy estate. The property remains part of the bankruptcy estate, until an exemption protecting the property is granted or the chapter 7 trustee abandons the property. If the chapter 7 trustee has ceased your account, you may be able to claim the account as exempt. If the account cannot be claimed as exempt, you could convert your case to a reorganization bankruptcy to protect the asset. Your attorney should have advised you on the extent of your exemptions.
    Answer Applies to: Nebraska
    Replied: 8/29/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Contact trustee to see if and when it could be frozen. If the money is for the bankruptcy estate, it may not be released. You should contact your attorney asap so they can contact the trustee.
    Answer Applies to: Florida
    Replied: 8/29/2014
    Dickson Law Group, LLC
    Dickson Law Group, LLC | John P. Dickson
    I assume your brokerage account is held in trust and you are the sole benefit. Your recourse against the trustee and ability to circumvent the trustee's direction is governed by the trust document. Have an attorney review the trust document to see what, if any, recourse you have.
    Answer Applies to: Illinois
    Replied: 8/29/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If it is exempt, your attorney can ask that it be unfrozen. But more likely it is frozen while he investigates what type it is and any activity that has occurred in the last 1-2 years, so you may just have to wait until he is done investigating it. Sorry!
    Answer Applies to: Michigan
    Replied: 8/29/2014
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney