How to Get Help When Credit Card Companies Freeze Your Accounts

A creditor or lender can freeze your checking and savings accounts in an attempt to collect a debt. If your creditor, such as a credit card company, receives a judgment from a judge granting its claim for the debt owed, the card company can then contact your bank and have your accounts frozen. This prevents you from withdrawing money; you can only deposit it. If you find your accounts are frozen and are unaware of any judgment made against you --- or you were aware of the judgment but chose to ignore it and not appear in court --- you can find professional help to assist you in unfreezing your bank accounts.

Help From Attorney

• 1

  Hire an attorney to file a petition to vacate a default judgment, which is a judgment you did not show up in court to defend.

• 2

  Grant the attorney the authority to return to the court that issued the judgment. Instruct him to file an "Order to Show Cause" form with the civil court clerk's office there. Either you or your attorney can complete the form and file it with the civil court clerk's office. Online versions may be available in your state, which you or your attorney can download.

• 3

  Declare that you did not receive the summons, were too ill to appear in court, could not take time off from work to appear in court or were not responsible for the debt because of identity theft. Either excuse is allowable in most states. Enter your declaration on the "Order to Show Cause" form and then sign and date the document.

• 4

  Follow court procedure. In New York, for example, a judge must sign your Order to Show Cause before you can serve it to the attorney for the plaintiff, which is your credit card company.

• 5

  Return to court on your "return date" to defend your case.

• 6

  Argue your reason for not appearing in court through your attorney or on your own behalf. Ask the judge to vacate the judgment and unfreeze your bank accounts.

Help From Credit Counselor

• 1

  Contact an accredited credit-counseling agency and grant your credit counselor the authorization to contact your credit card company.

• 2

  Request a settlement. If you do not wish to defend the judgment in court, meet with a credit counselor, who can help you negotiate a settlement with your credit card company outside of court. Your card company may not accept the settlement offer, but you can argue for one, especially if you are experiencing financial hardship or do not have the total debt amount in your bank account.

• 3

  Pay the judgment or agreed-upon settlement. Paying a judgment will unfreeze your bank accounts and allow you to once again make withdrawals.