Frozen Bank Accounts and Bank Levies In New York, New Jersey & Pennsylvania


Have you just discovered that your bank account is frozen or has a levy against it and you can’t access some of your money?  If so, contact Graham & Borgese today to speak with one of our knowledgeable and experienced attorneys. We will provide you with a free consultation and explain what options you have to release your account as quickly as possible.

We Can Un-Freeze Your Bank Account. Contact Us Today.

(*NO Child Support, Divorce, Taxes or Tenant/Landlord Cases. Sorry.)

Fields marked with a * are required.

What Is A Frozen Bank Account or Bank Levy?

A restrained or “frozen” bank account is a bank account that you cannot take money from because a creditor has directed the bank to hold your money for collection purposes.  When your bank account is frozen, you can put money into it, but you can’t take money out.

Why Is My Bank Account Frozen In The First Place?

If your bank account has been frozen, that most likely means that a creditor has obtained a judgment against either you or someone you share the bank account with.  New York, New Jersey and Pennsylvania allow creditors to do this so they can put significant pressure on you to pay your debt.

Why Does My Account Have A Negative Balance?

If you have received a statement or checked your balance on-line, you may be extremely concerned that a negative balance is being reported.  This does not mean that the creditor took all of your money and then some to satisfy their judgment.  In New York State, creditors are allowed to “freeze” double the amount of the judgment and this oftentimes makes it appear like you have a negative balance.  In the vast majority of cases, the money is still in your account and has only been frozen.

Is Any Of The Money In My Account Safe?

A New York State law known as the “Exempt Income Protection Act” (or simply the “EIPA”) limits the ability of a creditor to restrain, or “freeze,” bank accounts.

Under the EIPA, if your bank determines that you possess $1,950 or less of non-exempt income in any account, that account cannot be frozen.  “Exempt” income includes any of the following:

Exempt funds include the following:

– Supplemental Security Income (SSI),
– Social Security retirement,
– Social Security Disability (SSD),
– Public assistance (TANF),
– Income earned while receiving SSI or public assistance,
– Disability benefits,
– Workers’ compensation benefits,
– Veterans’ benefits,
– Black lung benefits,
– Spousal support, maintenance (alimony), or child support,
– Railroad retirement, and
– Unemployment benefits

If no exempt funds can be identified in the bank account, any amount over the $1,950 that is present in your account can be frozen.

If your bank determines that some of the money in your account contains exempt funds, then the cut-off amount is raised to $2,660.  This means that if you have less than $2,660 of exempt and non-exempt income in your account, then there will be no freeze whatsoever, but anything above the $2,660 can be frozen.

In New Jersey and Pennsylvania, the law is different but some of these same protections exist there as well.

How Does The Process Work?

Generally speaking, a creditor must first file a lawsuit against you and obtain a judgment from the Court.  They then locate your bank and send a notice along to restrain your account.

Once your account is frozen, your bank is required to send you a form, within two (2) days, instructing you on how to proceed in different scenarios (including when you believe that none of the money in your account should be subjected to the freeze).

We Can Un-Freeze Your Bank Account. Contact Us Today.

(*NO Child Support, Divorce, Taxes or Tenant/Landlord Cases. Sorry.)

Fields marked with a * are required.