It doesn't get much more frustrating than finding out your bank account has been frozen and you cannot access the funds on deposit. This can happen when a creditor has a judgment against you and in some cases, such as child support, tax liabilities and other obligations, no prior court involvement is needed at all. When a creditor obtains a judgment against a "judgment-debtor," the "judgment-creditor" can ask the court for an order freezing any assets belong to the judgment-debtor, including checking, savings, credit union and similar accounts. The account may be "exempt" in part, or in whole, depending on the type of funds on deposit.
Notice Required by Indiana Law
Indiana law requires that upon freezing an account, the bank must send the judgment-debtor information that contains:
What Creditors Can't Touch
Certain funds are either partially or fully exempt from execution to satisfy an outstanding judgment under federal or Indiana law. Those funds include:
Request an Exemption Hearing
To get "exempt" funds freed up before the hearing date set in the notice received, one must ask the court for a prompt "exemption hearing. The purpose of the hearing is for the court to determine the extent that the funds on deposit may be exempt from execution in satisfaction of the judgment.
To get a hearing, fill out the form provided in the notice and send one copy to the court for filing and one copy to the attorney who represents the judgment-creditor. If no form was received, simply write a letter or prepare a legal "motion" requesting the hearing. Under current Indiana law, the hearing should be set within five days of receiving the request for a prompt hearing.
Rights of a Joint Depositor
If a spouse or other joint depositor is on the frozen account, that person has the same rights and responsibilities regarding a prompt hearing. If the joint depositor is not subject to the judgment and corresponding order that froze the account, funds traceable to that depositor are exempt and should be released. It is most important for the depositors to trace the source of the funds on deposit to determine what is exempt from execution.
For More Information:
Contact Lewis Legal Services, P.C. for advice on whether your rights have been infringed or if you need to act to release frozen bank funds that you desperately need - do not sleep on your rights! Contact us today.
Bankruptcy Law Office of Eric C Lewis
Lewis Legal Services, P.C. P.O. Box 40603 Indianapolis, IN 46240 USA