If your bank account has been frozen by a creditor in New York, a judgment was likely entered against you. Here is what it means, what you can do, and how to protect your exempt income from collection.
In New York, a creditor who has obtained a judgment against you can serve a restraining notice on your bank. The bank is then required to freeze funds in your account up to the judgment amount. This happens after a debt lawsuit where either a default judgment was entered (because you did not respond) or a judgment was entered after a hearing.
New York law protects certain funds from being restrained or seized, including:
If your account contains only exempt funds, you can file an exemption claim with the court to have the funds released. Act quickly — there are deadlines.
The best way to prevent a bank freeze is to respond to the debt lawsuit before a judgment is entered. If you were served with a Summons and Complaint and have not yet filed an answer, use our free tool to build and file your written answer immediately.
Enter your name, the plaintiff's name, county, and index number from your summons. The form updates in real time.
Check the defenses that apply to your case — identity theft, paid debt, statute of limitations, wrong amount, and more.
Download your completed answer, sign it, make copies, serve the plaintiff's attorney, and file with the court clerk.
Don't let them get a default judgment. Build and download your completed written answer in minutes — at no cost.
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