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What circumstances effect freezing of one's bank accounts?

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asked on Jun 29, 2009 at 02:37
by   Mohan
edited on Apr 4, 2017 at 04:18
 
Can anyone explain what are the circumstances that can effect freezing of one's bank accounts?

Is it when one is declared a bankrupt? Are there circumstances before bankruptcy, the bank can get an order from the court to freeze one's bank account(s)?

My 2nd question: In what manner can the bank get an order to deduct monthly part of one's salary to pay off the bank debt?

My 3rd question: How long will it take for one to be declared bankrupt after receiving bankruptcy notice?
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answered on Jul 7, 2009 at 00:53
by   notalawyer
To freeze a bank account, normally there are only 3 ways

1. The account holder is bankrupt
2. The account holder has died and the bank is informed
3. There is a Court Order to freeze the account

If a bank "freezes" an account without any of the above reasons, it could be grounds for legal action against the bank.

If the debt is owing to the bank, for example a credit card debt, the "fine print" in the terms and conditions that you signed may allow the bank to take money from your savings/current account in the same bank to pay for the debt.

2nd Question
If the debt is not a owing to the bank, but is a Judgment Debt ( meaning the court has ordered you to pay this debt), a Judgment Creditor can apply to the court to "garnish" the money from your bank accounts.
Normally you will be notified of garnishment proceedings at court before this happens.

3rd Question
A few months to a few years depending one whether you contest ( fight ) it or not.

If you are afraid of your salary being garnished, you can ask your employer to pay you in cash.
This is your right in Employment Act law.
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answered on Jul 7, 2009 at 15:34
by   Mohan
edited Apr 4, 2017 at 04:20
 
@Notalawyer,

Thanks so much for the answers. I can see that your answers carry substance. Appreciate your time and effort in answering many questions in this section as there are many who need help and advice. You are in fact doing a good deed to help the needies especially when they are facing mounting debts and living in darkness, dead end, suicidal feelings, no where to turn to and in need of guidance not just legally but also emotionally.

Please keep up your good work. May God bless you and your family.
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answered on Jul 8, 2009 at 18:41
by   notalawyer
edited Apr 4, 2017 at 04:21
 
@Mohan,

It is well known that a lot of people fell prey to predatory banks. The banks don't seem to understand simple human problems like losing one's job or business difficulties. They just want their installments paid on time, or else...

We should do all we can to help the victims.

You can also do your part to help give advice. No advice is too trivial.
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answered on Jul 8, 2009 at 21:15
by   Mohan
edited Apr 4, 2017 at 04:22
 
@notalawyer,

Yes, you are right "no advice is too trivial". In fact, I've been answering many questions in many previous threads but under different different names. I understand the debtor's heart as I am also one who has gone through difficult moments in my life.

It is this forum which has given me more confidence to move on in life.

The only thing I'm lacking is the good knowledge of the law and legal system.
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answered on Mar 31, 2017 at 18:36
by   Jega
How long does it take to release the money in the freeze account after all have been settled?
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answered on Oct 25, 2017 at 22:36
by   martin
edited Nov 7, 2017 at 08:57
 
Can banks freeze our account just because the money inside is not proportional to the salary?

For example,
Ali gave me RM10000 per month for 20 months, so by the end of the 20th months, I have RM200000 inside the bank. But I do not have any job or payslip. 
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answered on Feb 13, 2018 at 00:00
by   Nick
@notalawyer

Can bank apply for garnishment order against credit card defaulter? 
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answered on Mar 17, 2018 at 10:55
by   Lighter
edited Mar 20, 2018 at 21:20
 
@Nick, the answer is yes, Bank A just garnished my (single name) savings and current account in Bank B.

@notalawyer, need your expert advice.

1. Can the bank garnish joint account? My understanding is no, but I got different answer from different people.
2. What is the purpose of attending March 23's court hearing?
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answered on Mar 17, 2018 at 23:42
by   jeff005
edited Mar 20, 2018 at 21:21
 
Personal view, non intrusive:

1.  Joint names accounts can be garnished.

2.  Take note that under Employment Act, wages savings account cannot be garnished. 

3.  The 23 March is to force you out in the open to make a commitment on how you would repay this debt. It should have been a Judgment in Default (JID). The bank should have detected that you do have a substantial monthly income and yet did not make an attempt to repay part of the outstanding. Knowing that this salary account cannot be garnished so freeze it.
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answered on Mar 18, 2018 at 08:24
by   notalawyer
1. Can the bank garnish joint account?
Difficult and messy to garnish because only half belongs to you.
This is why most joint accounts are not garnished.

2. What is the purpose of attending Mar 23's court hearing?
To hear your sob story so that the Judge can decide whether to return certain % of the funds to you.

Take note that under Employment Act, wages savings acc cannot be garnished.
Hi Jeff, which section is this under?
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