How Long Does It Take to File Bankruptcy in Maryland?
Discovering that your bank account has been frozen can be alarming, leaving you unable to access your hard-earned money. For Maryland residents, it’s important to understand who has the authority to freeze your bank account and under what circumstances this can happen. From creditors to government agencies, different entities may take this action, often as part of debt collection or legal proceedings. This article explores who can freeze your bank account in Maryland, why it might happen, and what steps you can take to regain access to your funds.
Who Can Freeze Your Bank Account in Maryland?
Several entities have the authority to freeze bank accounts in Maryland under specific legal conditions. Here’s a breakdown of who can freeze your account and why:
1. Creditors with a Court Judgment
- Creditors, such as credit card companies, medical providers, or lenders, can freeze your bank account if they’ve obtained a court judgment against you for unpaid debts.
- The creditor must file a lawsuit and win the case before they can garnish funds from your account. This process is known as a bank levy.
- Once the judgment is issued, the creditor can request the court to freeze your bank account to collect the amount owed.
2. Government Agencies
- Unpaid Taxes: The Internal Revenue Service (IRS) or the Maryland Comptroller can freeze your bank account if you owe back taxes. This is called a tax levy, and it doesn’t always require a court order.
- Child Support Enforcement: Maryland’s Office of Child Support Enforcement can freeze your account if you’re behind on child support payments. This action is often taken to ensure that custodial parents receive the financial support they’re entitled to.
3. Banks Themselves
- If you owe money to the same bank where you hold your account—for instance, an unpaid credit card balance or a personal loan—the bank may freeze your account to recover the debt.
- This is called the right of setoff, and it allows banks to take money from your account to pay off debts owed to them without going to court.
4. Court-Ordered Actions
- A Maryland court can order your bank account to be frozen as part of a broader legal case, such as during bankruptcy, fraud investigations, or other civil disputes.
What are some reasons a person can freeze their bank account in Maryland?
Understanding the reasons behind a bank account freeze can help you identify potential solutions. Here are the most common reasons Maryland residents face this situation:
- Unpaid Debts: Failure to pay creditors can result in legal action and a subsequent bank account freeze.
- Tax Liens or Levies: The IRS or Maryland Comptroller may take action if taxes are owed.
- Child Support Arrears: Falling behind on child support payments can lead to account freezes to collect unpaid amounts.
- Court Orders: Divorce proceedings, lawsuits, or bankruptcy cases may involve account freezes to protect funds or settle disputes.
What to Do If Your Bank Account is Frozen in Maryland?
If your bank account is frozen, don’t panic—there are steps you can take to address the situation and potentially regain access to your funds:
- Identify the Cause:
- Contact your bank to find out who requested the freeze and why it was placed on your account.
- Review any court notices, debt collection letters, or tax notifications you’ve received.
- Challenge the Freeze:
- If the freeze is due to a creditor’s judgment, verify that the debt is valid. You may be able to dispute the judgment or negotiate a payment plan.
- In cases of mistaken identity or errors, provide proof to the bank or creditor that the freeze is unjustified.
- File for Exemptions:
- Certain funds in your account may be exempt from garnishment in Maryland, such as Social Security benefits, disability payments, and workers’ compensation. Filing for these exemptions can protect your funds from being seized.
- Work with an Attorney:
- An experienced attorney can help you navigate the legal process, file motions to release frozen funds, and protect your rights. This is especially important if the freeze involves significant amounts of money or complex legal matters.
Why Contact The Law Offices of Nicholas J. Del Pizzo for Help with Bank Account Freezes?
A frozen bank account can disrupt your life, leaving you unable to pay bills or cover basic expenses. The Law Offices of Nicholas J. Del Pizzo in Baltimore is here to help Maryland residents understand their rights and take the necessary steps to resolve account freezes.
With decades of experience in bankruptcy and debt relief law, attorney Nicholas J. Del Pizzo provides personalized, compassionate legal assistance to clients facing financial challenges. Our team can help you:
- Determine the cause of the freeze and assess its legality
- File for exemptions to protect your funds
- Negotiate with creditors or government agencies
- Explore debt relief options, such as bankruptcy, to prevent future freezes
We understand how overwhelming financial struggles can be and are dedicated to helping you regain control of your finances with clear, actionable solutions.
If your bank account has been frozen, it’s important to act quickly to understand your options and resolve the issue. Whether the freeze is due to unpaid debts, taxes, or court orders, the Law Offices of Nicholas J. Del Pizzo can provide the legal support you need to protect your finances and achieve peace of mind. Contact us today for a free consultation and take the first step toward financial stability. Let us help you regain access to your funds and navigate the path to a more secure future.