Legal Question in Credit and Debt Law in Pennsylvania

My account was frozen, the funds taking by an collection agency. I didn't receive any documentation that they were looking to collect the funds. I lived in in NY when I accumulated this debt with my now ex husband. I now live in PA. The bank allowed them access to my account. I was told because PA is a common wealth state they could obtain the funds in my account, for this debt.

Asked on 10/19/12, 8:00 am

1 Answer from Attorneys

If your account was frozen, it means that you have a judgment against you which you IGNORED. Unless you were not properly served or served at a no longer valid address, you had to have received notice of the lawsuit. However, once a lawsuit is filed and judgment is entered, you have had your notice. No judgment creditor is going to notify you about freezing your bank account. Common sense would dictate that if you did get a notice like this that you would drain your bank account. Creditors want money - so they are not going to warn you before they levy on a bank account.

I don't know what you were told. The ability to freeze bank accounts has nothing to do with PA being a commonwealth. If you bank at a big multi-state bank that has branches in NY and PA and a judgment was entered, your account can be levied upon. Stop banking there immediately. Cancel any direct deposits.

I don't know where the judgment was entered - NY or PA? If in PA, you are not permitted to keep in excess of $300 in any one bank account in PA. If the judgment was entered in PA, then either do without a bank account or get an online bank account (like at ING Direct, ally, ready debit financial or other online bank). If this is a NY judgment, then get a bank account at a very small community bank in PA or a credit union, preferably one located 25-50 miles from your home and which does not have a lot of branches. It can't be at a place like PNC, Bank of America, Citi, Chase or something like that. It has to be like the First Bank of Name of Small Town or something like that.

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Answered on 10/19/12, 10:13 am

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