What You Can Do About Creditor Collection Activities

I Received A Summons

If you have received a summons, it means that one of your creditors has taken legal action against you in court. The summons may have a return date on it, which is the date of your court hearing, or will require a response. Your creditor filed this lawsuit to reduce your debt to a judgment so that it can work through the courts to collect it. Once a judgment is obtained, creditors can garnish your wages and bank accounts and attach liens to your other assets. Please review my additional content for more information on how your creditors can take collection action against you in the courts.

Stop Garnishments Before They Start

If you've received a summons from one of your creditors, it is time to act. Don't wait any longer. Once a judgment is obtained against you, the situation will only get worse. Your creditor will continue collection action against you that will cause you further stress and misery. Contact my office in Rockford for a free initial consultation to see if a fresh start in bankruptcy is the best way to regain control of your finances.

I Received A Citation To Discover Assets

If you have received a citation to discover assets, it means that a creditor has obtained a judgment against you. Now the creditor wants to examine you in court, under oath, to find out information about you to collect the judgment. The creditor's attorney most likely will ask where you work, where you keep your bank accounts and what type of property you have.

Do Not Ignore A Citation To Discover Assets

A citation to discover assets is a serious proceeding. Once you receive the citation, Illinois law prevents you from using or disposing of your own property. This means that you cannot sell your property, transfer it or even spend your own income tax refund. If you fail to show up for your court date, the judge may issue a bench warrant for your arrest. Filing bankruptcy puts a stop to all collection efforts by your creditors, including citation proceedings. If you've been served with a citation to discover assets, contact our office about filing bankruptcy to put a stop to these proceedings once and for all.

What Is A Citation To Discover Assets To A Third Party?

If a creditor has obtained a judgment against you in court, it can work through the courts to collect on that judgment. This includes serving a citation on a third party, which is usually your bank. Your creditor is looking for assets to collect on its judgment and has the power to serve parties it believes is holding property that belongs to you. Once your bank receives a third-party citation or garnishment, it is required by law to put a freeze on any accounts you have, up to double the amount you owe your creditor. If your bank ignores this citation or garnishment, the creditor could hold your bank liable for your judgment, so banks never ignore these citations.

My Bank Account Is Frozen

If your bank account has been frozen, it is probably because a creditor has obtained a judgment against you and has served your bank with a citation to discover assets to a third party or a garnishment.

What Happens To The Money In My Frozen Bank Account?

Eventually your bank will turn over the balance of your account to your creditor, and your account will remain frozen until the judgment is paid. If you have outstanding checks or debits when your account is frozen, those checks and debits will bounce and your bank may charge you overdraft fees. Any future deposits, such as a direct deposit of your paycheck, will also be frozen until you pay off your judgment in full.

An Experienced Bankruptcy Lawyer Can Help

Filing for bankruptcy will unfreeze your bank accounts and give you a fresh start so you can get on with your life. If your bank account has been frozen, call 815-306-4189 or contact me immediately to see if a fresh start in bankruptcy is right for you.