Can Midland Credit Management Freeze My Bank Account After Judgment?

The Complete Answer

From 30 Years on the Debt Buying Side.

A bank levy requires a judgment first. Midland Credit Management cannot freeze or seize funds from your bank account while a lawsuit is pending. They must first obtain a court judgment. Only after a judgment is entered can they apply for a bank levy order.

How a bank levy works. Once Midland Credit Management obtains a levy order the bank is required to freeze funds up to the amount of the judgment. This can happen with little warning. After a levy is executed there is typically a limited window to challenge it through the court’s process.

Certain funds are generally protected. Social Security benefits, disability payments, and unemployment compensation are generally protected from levy under federal law. State law may provide additional exemptions. If your account contains potentially exempt funds a local legal resource can explain the process for asserting those exemptions in your jurisdiction.

Prevention is the best strategy. Responding to the lawsuit and requiring Midland Credit Management to prove their documentation is the most effective way to prevent a judgment — and therefore prevent a bank levy. The Midland Credit Management Defense Toolkit gives you the foundational knowledge to understand what they must prove.