How account freezes usually happen
In most cases a funder cannot freeze your account just by asking the bank. A freeze usually follows a court judgment. The funder then serves a restraining notice or levy on your bank, which holds funds up to a set amount.
Some MCA judgments are obtained quickly, for example through a confession of judgment signed with the original agreement, which may mean you did not see a lawsuit before the freeze.
What to do right away
- Ask your bank for a copy of the restraining notice or levy and who served it.
- Identify the court, case number and judgment amount from that notice.
- Contact an attorney promptly. Time limits may apply to challenge a judgment or claim exemptions.
- Gather your MCA agreement and payment history.
Where Saldo Vita fits
Saldo Vita is not a law firm and cannot represent you in court. We can help organize the documents, review the account in the context of your other obligations and, where appropriate, pursue a negotiated resolution with the funder. If legal help is needed, independent counsel may be arranged under a separate retainer.
Questions
Can a funder freeze my personal account too?
If you signed a personal guarantee and a judgment was entered against you personally, personal accounts may also be at risk. An attorney can explain your exposure.