The Fair Debt Collection Practices Act Gives You A Way To Stop Collections Calls And Wage Garnishment

There are laws that restrict the practices of collections agencies. The federal Fair Debt Collection Practices Act makes it illegal for collection agencies to engage in many of the most aggressive practices these firms resort to. The law is on your side, and you can put a stop to the threats.

After you retain a bankruptcy lawyer, your file goes to the bottom of the pile and the calls stop.

I am attorney Peter R. Scribner of Rochester, New York. For 30 years, I have been helping individuals and families protect themselves from the illegal tactics often employed by private collections companies. Retain my services by calling 585-800-9616.

How Creditors Freeze Your Account Without Your Knowledge

After a creditor gets a judgment against you, the most common first step in collecting on that judgment is to "restrain," or freeze, your bank account. Here's how it works: An out-of-state creditor, like a national credit card company, gets a law firm in New York state to sue you and get a judgment against you. Once it has a judgment, that law firm mails out a restraining notice to all the major banks and credit unions in Rochester.

It doesn't know if you have accounts with any of the banks it sends the notice to; it is just hoping it lucks out and hits a bank that has your money in it. The attorneys can send out a restraining notice on their own; they do not need a sheriff or marshal to serve it, and it only costs them the price of a postage stamp. That's why it is usually the first thing collection attorneys do to enforce a judgment.

When a bank receives a restraining notice, it checks its records to see if you have an account there. If you do, the bank must restrain, or freeze, all the money in the account up to twice the amount of the judgment. The money doesn't go away (at least not yet), but you cannot access it and any checks you have written on the account that haven't cleared will bounce. Money that is deposited into the account after the restraint is in effect — such as automatic payroll deposits — will also be frozen.

Once a creditor finds out that it has been successful in restraining your bank account, it will then have a sheriff or court marshal serve a "property execution" on your bank. When that happens, the money actually goes away from your bank and is applied to the judgment. As a legal matter, a creditor is not entitled to take certain funds, such as Social Security or 90 percent of payroll money. As a practical matter, a restraint completely messes up your bank account, even if the money in your account is not supposed to be taken by a judgment creditor.

The Good News Is You Have Options

What can you do? Call me, for one thing. I can give you good advice as to what your bankruptcy and nonbankruptcy options are when your money is restrained in a bank account. If we decide that bankruptcy is the best option, the money in your account will be released from the restraint the moment we file a bankruptcy petition.

The best thing to do is to call me before your bank account is restrained, when you know you are in serious financial difficulty and are being — or about to be — sued by your creditors.

Call Me Today At 585-800-9616 To Stop Creditor Harassment Tomorrow

As soon as you retain me to file for Chapter 7 or Chapter 13 bankruptcy, by law, the collectors must deal directly with my office. That means that you can put a stop to the harassing phone calls at home and work — tomorrow. Contact me today for a free consultation about your debt relief needs. I will clearly explain the laws about how bank account restraints and wage garnishment work and how to make Fair Debt Collection Practices Act violations stop.

My law firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.