Once my bank is garnished, it’s too late to get it unfrozen.
Whether you file a Chapter 7 or a Chapter 13 bankruptcy, your bank account has to be released from garnishment.
If I file for bankruptcy, my bank will close my account.
Typically, banks don’t close your account when you file a bankruptcy (but some do).
In Georgia, there are different ways available for a creditor to collect on a judgment. One of the most popular methods is to garnish bank accounts. A bank garnishment is a legal action filed against the bank where you have your account. Typically, once a bank is served with this garnishment action, the bank immediately freezes your account. For most people, this means they will no longer have access to their money and, if they have written checks against the garnished account, those checks will bounce and the bank will charge fees for the bounced checks. Khoshnood Law Firm can help stop bank account garnishments.
The good news is it is possible to stop bank garnishments! Filing a bankruptcy, either a Chapter 7 or a Chapter 13, will stop bank garnishments from proceeding and can result in the return of the garnished funds to you!
Garnishment actions have to be released, once a bankruptcy is filed, in accordance with the provisions of a section of the Federal bankruptcy laws known as the “automatic stay”. This provision of the bankruptcy laws goes into effect when a bankruptcy case is filed and it serves to prevent creditors from continuing to make collection attempts. The automatic stay is one of the major benefits associated with filing a bankruptcy case and it is this provision that will release a bank garnishment.
Contact us if you are facing a garnishment action. We may be able to save your money!