Help! Release a frozen bank Account

[riobrazil]

My bank account was levied via a creditor who got a judgment against me. The order came from California the bank account was in Arizona. The bank did not care that the order came from California and had no jurisdiction in Arizona. I subsequently file bankruptcy. I was told that the stay from BK would free the funds. The money had not been sent to the Sheriff, and still at the bank when the BK was filed. However, upon the banks notification of the BK, they said they would not free the funds to me. They said they still needed a release. Upon speaking with the Sheriff, they indicated that at this point they would not accept any money and effectively would send it back to the bank. The indicated that the bank should return the funds to me with the paperwork they provided. The bank won't budge. What can I do. I need the money to pay bills etc. I'm frantic.....

[lrprn]

Did a lawyer file your bankruptcy (Ch 7 or Ch 13)? Or did you file on your own without one?

[riobrazil]

Filed the inital papers on my own, but a lawyer will take over very soon. That makes a difference?

[lrprn]

Filed the inital papers on my own, but a lawyer will take over very soon. That makes a difference?

Only that once you retain a lawyer, he/she can work to force the bank to release your funds much more effectively than you as a consumer can. When will your lawyer be on board?

[riobrazil]

Yes seeing him this morning....So it sounds like a little nudging from the attorney will be effective?

[lrprn]

Yes seeing him this morning....So it sounds like a little nudging from the attorney will be effective?

If there's no legal reason for the bank to keep your money, then getting a communication from a lawyer threatening legal action typically is effective . And if there is a legal reason the bank is keeping you from your money, then the lawyer should know if it's possible to get the money released and how.

[GoingDown]

Situations like these that remind me how important it is get paper checks instead of direct deposit to a checking account. You can simply cash paper checks and spend the cash as needed. But once a creditor seizes a checking account, or savings account, or a CD, or stocks, bonds, etc., there is very little that anyone can do about it.

As soon a creditor threatened a lawsuit, I would rush down to the bank and withdraw all of my money and just start using cash and money orders to pay for everything from then on.

[CindyLou]

Have you gone in to your local branch and spoken to the manager? Similar incident happened to me and calling the 800# got me nowhere but the local bank manager was able to straigten it up quickly.

[nosrus77]

When I managed my branch, I wouldn't have released the funds without something from the court or lawyer authorizing me to do so. You gotta remember, they got a court order to hold the funds (doesn't matter what state) and now they are just concerned with covering their backsides.

There are so many laws and regs with banking now, that bankers are scared to death to make a wrong move for fear of losing their jobs.

One of the reasons I'm no longer in banking . . . .

[riobrazil]

Drama Continues What Now...

I am still waiting around. It is incredible BS. I filed a Chap 7 BK, and the attorney was able to get the BK trustee to sign a release abandoning the funds back to me. Great I thought. It was forwarded to the bank, the bank tells me that the release is invalid because it did not come from the Sheriff?? WTF!!! Each time the bank is contacted they give a new reason why they cannot release the funds. Finally, they claim they can only get a release from the creditor to release the funds. I dont think anyone has spoken to the legal department at the bank, only the dumbass levy department. Can they flipflop on releasing the funds when it should be a matter of law?