
Pre-Foreclosure Notices
July 3, 2025
Housing Insecurity Prevention Assistance Programs Open
July 3, 2025A frozen bank account is a bank account that you cannot access because a creditor has placed a restraint on it. When your bank account is frozen, you can put money into it, but you can’t take money out. This can happen because a creditor or debt collector has obtained a court judgment against you or your joint account holder if you have a joint account. It is common for judgment creditors to put a hold on your bank account for twice the amount of the judgment against you, but the only amount you owe is the exact amount on the judgment. Certain money is exempt from most debt collection and being frozen in a bank account: Social Security,
Supplemental Security Income (SSI), Social Security Disability (SSD), spousal
support/maintenance, child support, veterans’ administration benefits (VA), public
assistance (PA), 401(k), 403(b), individual retirement accounts, workers’
compensation, unemployment insurance, public or private pensions, and life
insurance. Still, accounts including these funds have often been frozen in error. If the frozen bank account contains exempt funds, you should call your bank and the attorney for the creditor and inform them of the exempt
nature of the funds. The attorney may ask for proof, but should immediately
release the account if the funds are proven to be exempt.
LSLI’s Consumer Debt Legal Assistance Project provides legal assistance to persons who are experiencing consumer debt problems, especially in matters of medical and credit card debt. Services may include litigation defense and representation, phone advice, and/or referral for further services, including bankruptcy, where appropriate. To be screened for services, Nassau residents can call 516-292-8100, and Suffolk County residents can call 631-232-2400.