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St Louis Bankruptcy: What Should I Do If A Creditor Freezes My Bank Account?


When a creditor receives a judgement against you for an old debt that you owe, it may pursue a few different remedies. One such remedy is to place a lien upon your banking accounts (checking or savings). This lien will remain until the full debt is paid, or if you file a St Louis bankruptcy.

A creditor judgement entitles the creditor to retrieve delinquent funds owed to it in one of three main ways: 1) a wage garnishment (which is the most common method); 2) by placing a lien upon a major asset (such as a piece of real estate); or 3) by placing a lien upon your bank account.

Once the lien is placed, the bank is instructed to “freeze” the account. This means that you will no longer be able to withdraw any of the funds therein. The bank will then provide you with the “Return Date”.   The return date is a date in the future (usually about forty-five (45) days out). If you file for bankruptcy before the return date, then the money will be “returned” to your account (so that the creditor may not keep it).


After the bankruptcy petition is filed, all of your debts will be handled in one way or another by the bankruptcy court. In a St Louis Chapter 7, all unsecured debt is discharged (this would include things like credit cards, medical bills, payday loans, old gym memberships, etc.). In a St Louis Chapter 13, certain debts are paid back over a period of three (3) to five (5) years (such as mortgage arrearage, car notes, back child support, tax debts, and sometimes a portion of your unsecured debt).

But if you do not file for bankruptcy, and the Return Date comes and goes, then the creditor will receive all of the money that is in your bank account (and any money you continue to put into it). Even if you were to open a new account at a different bank, the creditor would eventually find out about that too (and very likely seek to have that account levied as well).

But it doesn’t have to turn out this way!! Our team is ready to help you in any way we can! All you need to do is pick up the phone, or fill out one of our online contact forms.

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

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