Bank accounts are not safe from creditors in Pennsylvania. If a creditor has a judgment against you then they can freeze your bank account and take your money.

There are a number of statutory exemptions, such as social security benefits, certain pensions, accident or disability benefits and a wild card exemption where you can protect a healthy $300.00. If you are unable to take advantage of any of these exemptions your entire bank account may be taken by a creditor that has executed a judgment against you.  And just a note, wages are protected in Pennsylvania (unlike many other states in this fine Union which allow wage garnishments), but once they have been deposited into a bank account they can also be taken. Direct deposit can make one seriously poor in this situation. If you have a judgment against you, I highly recommend stopping any direct deposit of wages.

A Chapter 13 or Chapter 7 bankruptcy will stop a creditor attempting to collect on their claim, including enforcing a judgment against an individual, however many times folks will not contact a bankruptcy attorney until their funds are frozen.

All is not lost (save perhaps the ability to pay a competent and handsome Philadelphia lawyer) as even if the accounts are frozen, a timely filed bankruptcy can still result in the release of the funds back into the control of the debtor. A frozen account does not mean those funds have been turned over to the control of the creditor (unless it was the IRS knocking on your door). You must act though, either by invoking some of those aforementioned exemptions or contacting an attorney, before your funds are turned over and lost in the deep pockets of your creditor.

If you are in the Philadelphia area, including in the counties of Montgomery, Delaware, Bucks and Chester, and you are interested in knowing your options, please contact the lawyers at  Coleman & Kempinski, Kimberly Coleman and Ray Kempinski, for a FREE CONSULTATION.

Image Credit:  David Goehring

Other Attorneys blogging the Bankruptcy Alphabet believe B is for:

• Bad Faith Filing - Dorota Trzeciecka (Miami, FL)
• Bailout - Monica D. Shepard (Jacksonville, FL)
• Bank Account - Jay S. Fleischman (New York, NY)
• Bank Account - Daniel J. Winter (Chicago, IL)
• Bank Tips - Bret Nason (Wisconsin)
• Bankruptcy - Christopher McAvoy (Taylor, MI)
• Bankruptcy Abuse Prevention and Consumer Protection Act – Peter Behrmann (Livonia, MI)
• Bankruptcy Budget – Athena Inembolidis (Columbus, OH)
• Bankruptcy Estate - Mitchell Goldstein (Metro Richmond, VA)
• Bankruptcy Mill – Kyle A. Lindsey (Chicago, IL)
• Bankruptcy Petition Preparer - Christine Wilton (Los Angeles, CA)
• Bankruptcy Petition Preparers - Bob Doig (Colorado Springs, CO)
• Bankruptcy Timeline – Shawn Wright (Pittsburgh, PA)
• Bar Date - Lewis Roberts (Ormond Beach, FL)
• Benefits of Chapter 13 – Michelle Kainen (Vermont-New Hampshire)
• Best Efforts Test – Nancy Martin (St. Louis, MO)
• Best Interests of the Creditors - Stuart Ing (Honolulu, HI)
• Beware - Catherine Eranthe (Marin County, CA)
• Bifurcate – Malinda Murphy Dionne (Tuscaloosa & Birmingham, AL)
• Borrow - Jeena Cho (San Francisco, CA)
• Business - Ryan D. Caldwell (Omaha and Lincoln, NE)
• Business - Cathy Moran (Northern California)
• Business and Business Debt - Rick Palmer (Newnan, GA)
• Business Bankruptcy - Christopher C. Carr (Philadelphia Area, PA)
• Business Bankruptcy - Mark Marcus (Los Angeles, CA)
• Buy Low Sell High - Bill Balena (Cleveland Area, OH)
• Budget – Elizabeth Johnson (Birmingham, AL)

 

3 Comments for this entry

• 

  Bankruptcy from A to Z - B is for Businesses and Business Debt

  December 2nd, 2011 on 10:21 pm

  http://www.rickpalmerlaw.com/bankruptcy-from-a-to-z-b-is-for-businesses-and-business-debt/

  Reply
• 

  The Bankruptcy Alphabet – “B” equals “Bailout”

  December 12th, 2011 on 1:37 am

  http://www.mdshepard.com/2011/11/the-bankruptcy-alphabet-b-is-for-bailout/

  Reply
• 

  Charlane Lawrence

  March 22nd, 2012 on 2:01 am

  Thanks for posting this info. I just want to let you know that I just check out your site and I find it very interesting and informative. I have also read great blogs in “San Diego Bankruptcy Attorney” check them out too!

  Reply

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