Bankruptcy Court Tells Credit Union That They Can’t Place An Administrative Freeze On A Joint Account Owned By Bankruptcy Debtor And Non-Filing Spouse

It’s not uncommon for banks and credit unions to try to freeze joint accounts owned by a bankruptcy debtor and the non-filing spouse.

That’s not legal! At our law practice we have seen this happen before.

No freezes

A court ruled that any credit union that puts an administrative freeze on an account is required to promptly seek bankruptcy creditor relief.  Because the credit union did not promptly defend if their freeze was appropriate the Court found that the credit union intentionally violated the automatic stay.  

If you have questions about an administrative freeze on a joint account, and our looking for a bankruptcy attorney to represent you, please give us a call to see your options. We have faced these types of issues and may have solutions to help you. Call 727-258-4999 today.

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