Bank Restraints
Bank Restraint Help
Imagine waking up to find your business accounts frozen, your cash flow stopped, and your ability to operate paralyzed. This nightmare is a reality for many business owners targeted by merchant cash advance (MCA) lenders. These lenders can freeze or seize your funds without warning, leaving you scrambling to keep your business afloat.
At Colonna Cohen Law, we understand how devastating this can be. Your business is more than just a source of income—it’s your passion, years (or decades) of hard work, and your livelihood. When MCA lenders use aggressive or unlawful tactics to restrain your bank accounts, you deserve a powerful advocate to fight back and protect your rights.
We’re here to help. Whether your accounts are frozen or you’re being threatened with garnishment, our bank restraints lawyer in New York is ready to stand by your side, using proven legal strategies to unfreeze your funds and get your business back on track.
What are Bank Restraints and Garnishments?
Bank restraints and garnishments are legal tools creditors use to seize funds from your accounts. In the context of MCA lawsuits, lenders freeze your bank accounts to recover unpaid debts. This action can happen suddenly, often leaving business owners with no access to their money.
Bank restraints in New York prevent you from withdrawing, transferring, or using your funds, while garnishments allow lenders to take money directly from your account. These measures can halt your operations, delay payroll, and strain your finances.
The worst part? Many business owners don’t know their accounts are at risk until it’s too late.
Types of Unlawful Bank Restraints and Garnishments
Not all bank restraints and garnishments are legal. Some MCA lenders use aggressive or deceptive tactics to freeze funds unlawfully. Recognizing these tactics is the first step to fighting back:
- No proper notice: Lenders must notify you before taking legal action. Freezing accounts without notice violates your rights.
- Targeting exempt funds: Certain funds, like payroll or personal income, are often legally protected. Garnishing these funds may be illegal.
- Using fake or invalid court orders: Some lenders misuse false or expired legal documents to freeze accounts. This deceptive practice causes unnecessary harm.
- Freezing funds without a valid judgment: Lenders cannot restrain your account without a court-approved judgment. Acting without this is a clear violation.
- Restraining excessive amounts: MCA lenders may freeze more funds than necessary, crippling your operations unfairly.
Unlawful restraints aren’t just frustrating, they’re also unjust. Don’t let lenders misuse their power to hurt your business. You have options, and we—here at Colonna Cohen Law—can help you fight back against unlawful bank restraints in New York.
The Process MCA Lenders Take for Bank Restraints and Garnishment in MCA Lawsuits
MCA lenders often act quickly and aggressively to collect unpaid debts. Bank restraint and garnishment processes are complex but designed to freeze your funds as fast as possible. Here’s how it typically unfolds:
Step 1: Sending Information Subpoenas with Restraining Notices
MCA lenders can send information subpoenas with restraining notices to any bank in the country. These subpoenas compel banks to freeze the funds in your account and provide detailed information about the account. Once the bank receives the notice, your funds may be restrained almost immediately, leaving the account holder (you) unable to access them.
- Note: Restraining notices must comply with state and federal laws.
Step 2: Handling Out-of-State Banks
If the account is held in an out-of-state bank, the process becomes more complex. The lender must file a turnover petition in court to obtain jurisdiction over the bank. This petition seeks a court order directing the out-of-state bank to transfer your funds to the lender. Until the turnover petition is granted, the lender cannot access the funds, but your account may remain frozen during this time.
- Note: Turnover petitions require valid court approval, which takes time and legal justification.
Step 3: Using a Sheriff or Marshal in New York
If the account is in New York, MCA lenders may use a sheriff or marshal to levy the funds. The sheriff or marshal is authorized to enforce judgments by seizing assets, including funds in your bank account.
Note: Sheriffs or marshals cannot levy funds that are legally exempt. Certain funds, such as exempt income or specific protected deposits, may not be subject to seizure.
Legal Strategies for Merchant Defense Against MCA Lenders
At Colonna Cohen Law, we help businesses like yours stand up to unfair MCA lender tactics. Many lenders push the boundaries of the law, hoping you won’t know your rights or fight back. We’re here to ensure they don’t get away with it.
When faced with MCA lenders that go after your business, it’s easy to feel trapped. But you do have options. With the right legal strategies, you can push back, protect your rights, and defend your business against bank restraints in New York. Here are some of the legal strategies to consider:
- Challenging the validity of the debt: Is the debt amount accurate? Were the terms of the agreement properly disclosed? Many MCA contracts include hidden fees or unfair terms that can be challenged in court. If the lender has acted deceptively, you can use that to your advantage.
- Fighting unlawful restraints and garnishments: MCA lenders must follow strict legal processes when freezing accounts or garnishing funds. You need a bank restraints lawyer in New York to review their actions for errors, like failing to provide proper notice, targeting exempt funds, or using invalid court orders.
- Negotiating with lenders: Litigation isn’t always the best route for every business. In some cases, negotiating with the lender can lead to reduced payments, restructured agreements, or even dismissed claims.
- Filing сounterclaims: If MCA lenders acted unlawfully, we might file counterclaims against them. This could involve seeking damages for lost income, business interruptions, or other harm caused by their actions.
At Colonna Cohen Law, we tailor our strategies to your unique situation, fighting to protect your business and unfreeze your accounts.
Why Work With Colonna Cohen to Unfreeze Your Accounts?
When your accounts are frozen, every minute counts. The financial strain, the stress, and the uncertainty can feel overwhelming. At Colonna Cohen Law, we understand what’s at stake—not just your money, but your livelihood and your peace of mind. That’s why we’re committed to providing fast, effective legal solutions tailored to your needs. We pride ourselves on our:
- Unmatched experience in merchant defense: We have years of experience in defending businesses against aggressive MCA lenders. Our team has deep expertise in the legal strategies needed to challenge unlawful bank restraints and garnishments. We know the tactics lenders use to pressure you, and we know how to counter them.
- Results-driven approach: Our priority is getting your accounts unfrozen and your business back on track. We act quickly, digging into the lender’s actions to uncover legal violations and challenge unfair restraints. Whether it’s negotiating a favorable outcome or fighting in court, we are relentless in protecting your rights.
- Personalized support: At Colonna Cohen, you’re not just another case number. We take the time to understand your situation, your business, and your goals. When you work with our bank restraints lawyer in New York, you will get clear communication, compassionate guidance, and a legal strategy designed specifically for your needs.
Your business represents years of hard work and dedication. Don’t let MCA lenders take that away from you. With Colonna Cohen Law on your side, you will have a strong advocate to defend your rights, unfreeze your accounts, and secure a brighter financial future. Call now at 917-740-2077 or reach out via our website.
Frequently Asked Questions (FAQs) About Bank Restraints in New York
To challenge a bank restraint, you can file a motion in court to vacate the restraint. This involves demonstrating that the restraint is unlawful or that the funds are exempt from garnishment. Consider working with a lawyer to ensure the motion is properly filed and argued.
If your account is frozen, you have the right to be notified and to challenge the restraint. New York law protects certain funds, such as Social Security, unemployment benefits, and certain business-related funds, from being frozen.
New York law provides exemptions for certain types of funds, including public benefits, retirement income, and wages needed for daily operations. Additionally, lenders must follow proper legal procedures, including obtaining valid court orders.
A bank restraint freezes funds in your account, preventing you from accessing them. In MCA cases, lenders often serve restraining notices to banks as part of their debt collection efforts.
MCA lenders are not allowed to freeze your account without following legal procedures. However, many borrowers discover their accounts are frozen before receiving formal notice due to the speed of the process.
Garnishment orders involve the direct seizure of funds from your account by a creditor with a valid court order. Bank restraints, on the other hand, freeze your funds but do not immediately transfer them to the creditor.
Yes, certain funds are protected by federal and state law and cannot be restrained or garnished. These include Social Security benefits, unemployment benefits, disability payments, and funds necessary for essential business operations.
MCA lenders typically file lawsuits and obtain judgments against borrowers. Once they have a judgment, they can serve restraining notices to banks or request wage garnishments through court-approved orders.
Yes, you can challenge a restraint or garnishment by filing a motion to vacate or modify it. You can argue that the lender violated legal procedures or targeted exempt funds.
If essential business funds are targeted, you can challenge the restraint or garnishment in court. Certain funds necessary for operating a business may qualify for exemptions, and a legal professional can help you seek relief.
You can take proactive steps, such as negotiating debt settlements, restructuring agreements, or ensuring contracts are reviewed for fairness. Contact a bank restraints lawyer in New York to address legal vulnerabilities.
Contact a lawyer immediately to review your case and file the necessary motions to challenge the action. If the restraint or garnishment is found to be unlawful, you may be entitled to have the funds released and recover damages.
Yes, if an MCA lender acted unlawfully or in bad faith, you may have grounds to file a lawsuit. This could include seeking compensation for lost income, damages to your business, and legal fees.
Contact Us Now
If your business is struggling with Merchant Cash Advance lawsuits, frozen accounts, UCC liens or collection actions, please contact Colonna Cohen Law to provide relief and protect your livelihood.
