Legal Question in Consumer Law in New York

My husband is permently disabled and I lost my job. We are overwhelmed with credit card debt and our monthly utility bills are getting harder and harder to keep up with and pay with our income. Our mortgage will adjust and we really will not be able to pay it then. Right now we are paying a late fee everymonth.

My question is, if we walk away from our home like so many other americans are doing right now and do not pay the mortgage, utility bills and all the credit cards, can anyone freeze our checking account (that is where our social security checks go into every month - we depend on that for food and also retirement money that goes into the checking account also?) Can they freeze the retirement accounts too?


Asked on 6/29/11, 12:25 pm

1 Answer from Attorneys

Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

In order to freeze your bank account, a creditor must first obtain a judgment against you. However, social security benefits and retirement accounts are exempt from seizure by creditors. Although creditors cannot seize these assets, they can still harass you. A bankruptcy filing discharges most debts and creditors would not be permitted to attempt to collect debts that have been discharged.

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Answered on 6/29/11, 2:44 pm


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