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What Do I Do If My Bank Account Has Been Frozen?

Bank accounts are frozen if someone has filed a claim against you. In most cases, this involves a debt collector who is trying to collect on an unpaid debt. Once you receive a notice that your account has been frozen, you have two options: you could either deal with the plaintiff's lawyer if your income is exempt or file what is called an Order to Show Cause to Vacate the Judgment.

If your income is exempt from collection, the lawyer has to release the freeze; however, it is a wise decision to file this order even if the attorney releases your account. Then, in the future, the lawyer will not be able to freeze your account unless they have a valid judgment. After you file a request for this Order to Show Cause to Vacate the Judgment there are several different grounds that the judgment can be vacated on, including:

  • Lack of jurisdiction- the court did not have the jurisdiction over you
  • Excusable Default- must provide a reasonable excuse for not appearing along with a defense to the complaint
  • Fraud or Misrepresentation- this is when the plaintiff's counsel does something wrong like telling you that you will not be taken to court but then filing and receiving a judgment against you after you attempted to set up an agreement to pay back the plaintiff.

Don’t Go Through This Stressful Time Alone!

Situations in which accounts are frozen can be stressful and complicated and you may feel fearful about what the future holds. It is important that you team up with a Chicago bankruptcy lawyer from Smith Ortiz P.C. to put years of knowledge and success on your side.

Our lawyers can then advise you through the steps that you need to take in order to resolve the situation with the plaintiff's lawyer or through the court. This process can take time and negotiation so call today for a free initial consultation and discuss your unique case with a lawyer at Smith Ortiz P.C.

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