How to Negotiate the Release of a Checking Account Restraining Order

A restraining order on a checking account is a lien or levy applied to an account after a court judgment gives the creditor the authority to do so. The creditor must notify you of the court petition and judgment against you but isn't required to notify you of the account freeze as they try to reclaim assets. Negotiating the release of the account may work in some cases, though other times, you might only get an account released after the creditor is paid in full.

Instructions

1. Go to the bank and obtain a copy of the judgment and petition served on the bank freezing your account. Make sure it properly identifies your accounts. Also ask the bank representative for any documentation on the type of account you have. Joint accounts may have funds that are not yours, such as in a joint tenants in common account.

2. Gather all documents you have about the debt, whether it is indeed your debt and records of being served for the court hearing. If you weren't served, this becomes a positive argument for you to get the release.

3. Call the creditor at the contact number provided in the judgment. If the debt is indeed yours, request a payment plan that works within your budget. If the debt isn't yours, explain the situation to the representative and ask to have the asset freeze removed.

4. Go to the court where the petition and judgment were made if the creditor representative isn't willing to negotiate with you. Ask the clerk for paperwork on vacating a judgment. Each county has different forms you must complete.

5. Complete the forms provided to you by the court clerk. Record the judgment number and request to vacate or re-open the case and the reasons why. Acceptable reasons are improper service of the initial court hearing, medical issues, proof that the debt is not yours or being unable to pay the amount at the moment.

6. File the forms with the clerk, pay any court filing fees and include a copy of all proof you have. Notify the creditor of a new hearing date.

7. Attend the hearing and answer any questions the judge has for you. Be honest and unemotional.

8. Consult with an attorney if you are still unable to negotiate a release of the checking accounts.

References

• New York Neighborhood Economic Development Advocacy Project: Vacating a Default Judgment
• New York Neighborhood Economic Development Advocacy Project: Frozen Bank Accounts
• Indiana Legal Service: Can a Creditor Take Money Directly Out of My Bank Account