Creditor took more money than entitiled to, can I get it back?

[poorinny]

Questions that I did not see the answers to here - sorry if it is information that I missed. I am in NY and going through a horrid divorce over the past 2 years. While I still have not received child support, SS etc my bills have gone by the wayside as well as the mortgage. I just found out one of my creditors froze my bank account and before I knew it took nearly double the amount of the debt out of my bank account ($5000.00 my entire tax return refund). I needed that money to pay current expenses and a Well that is broken. I have not filed BK yet because I do not want to expedite the impeding foreclosure on my home because it would be impossible to pay moving costs and rent without the CS, SS.

What is my best course of action here?

Can I get the money back that was taken from my bank account?

Should I file now?

How much time do I have before I am unable to get that money back?

[AngelinaCat]

Hi poorinny, I moved your question into a thread of it's own where it can be more easily seen and responded to.

Filing BK does not necessarily speed up a foreclosure or affect it. Member tobee43 is going on six years now that their house in NJ has not been foreclosed on. 'Hub's ex wife is going on a year and half post BK that her property has not been foreclosed on.

I would at the very least write a letter to the creditor stating that they were not entitled to the amount they took, and to return it. Send this by certified mail with return receipt. There probably are no teeth in that, but you have put them on notice that you know what they did, and that you aren't happy. That will stop (or should stop) any ticking clock. Other members will be along with better suggestions....

Good wishes to you.

[justbroke]

Some of that money/refund may be protested. I believe that if you have certain refunds, such as from the Earned Income Credit, it could be protected. Additionally, you may also be able to protect a certain amount of wages earned when you are head of household. I do not know anything specific for New York, but there should be things that are exempt from levy. There is probably a process to declare these exemptions. You will need to figure that out.

I found something while searching at http://www.nyc.gov/html/dca/download...fact_sheet.pdf. it's from NYC, but I think these are the laws for the State of NY in general. In fact, there are pretty good procedures on exactly what must be done within 2 days of a freeze. I would call the Attorney General and read this sheet as well. Find out what you need to do!

[DaisysMom]

Look up your orignal paperwork from the debt that was taken out of the account. There may be a clause that states they can charge you for their costs of getting the debt collected. That can add a pile of addtional fees to what you originally owed. Did you get a summons from your city or county court? That may be why they took more than the original debt.

DM

[WTH12345]

Questions that I did not see the answers to here - sorry if it is information that I missed. I am in NY and going through a horrid divorce over the past 2 years. While I still have not received child support, SS etc my bills have gone by the wayside as well as the mortgage. I just found out one of my creditors froze my bank account and before I knew it took nearly double the amount of the debt out of my bank account ($5000.00 my entire tax return refund). I needed that money to pay current expenses and a Well that is broken. I have not filed BK yet because I do not want to expedite the impeding foreclosure on my home because it would be impossible to pay moving costs and rent without the CS, SS.

What is my best course of action here?

Can I get the money back that was taken from my bank account?

Should I file now?

How much time do I have before I am unable to get that money back?

How can a creditor FREEZE your account? WTF? Aren't you in BK now?