RitezyNew York legal help
Ask for free

Debt & collections · Situation

Bank account frozen by a creditor in New York: how to get your exempt money back

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

If a creditor with a court judgment freezes ('restrains') your bank account, your bank must mail you an exemption notice and two exemption claim forms. If your account holds exempt money — such as Social Security, SSI, unemployment, public assistance, pensions, child support, or 90% of wages earned in the last 60 days — fill out the forms and send one to the bank and one to the creditor's lawyer within 20 days of the postmark. Unless the creditor objects in court within 8 days, the bank must release the money. Some of your balance is protected automatically and should never have been frozen.

Read on for the details, the exceptions and the sources.

In plain words

Restraining notice
A paper served on your bank after a judgment that freezes your account so you can't withdraw money.
Levy
When a sheriff or marshal actually takes money from the account to pay the judgment.
Exempt
Protected by law from being taken to pay a judgment.
Exemption claim form
A short state form where you check off the kinds of exempt money in your account and sign it.

What the law says, briefly

After a money judgment, the creditor's lawyer or the court clerk can issue a restraining notice, which is then served on your bank (CPLR § 5222(a)). The creditor must give the bank an exemption notice and two exemption claim forms along with it; without them, the restraint is void. Within two business days, the bank must mail you the notice and the forms (CPLR § 5222-a(b)). A creditor can serve no more than two restraining notices a year on a person's bank account (§ 5222(c)).

Some money must be left alone automatically. If exempt payments such as Social Security, SSI, veterans benefits, public assistance, unemployment, pensions or child support were deposited electronically or by direct deposit in the 45 days before the bank was served, the bank must not freeze a protected amount — set by statute at $2,500 and adjusted for inflation to $3,425 as of April 1, 2024 (CPLR § 5205(l), § 5222(h)). Separately, a restraining notice doesn't apply to an amount equal to 240 times the minimum hourly wage, and if the balance is 90% of that amount or less, the account can't be frozen at all (§ 5222(i)). The bank may not charge you fees for a restraint that breaks these rules (§ 5222(j)).

To claim other exempt money, send the claim forms within 20 days of the postmark. The bank must release the funds 8 days after it receives your form unless the creditor objects within that time by going to court; at the hearing, your signed form is evidence that the money is exempt, and the creditor has to prove what isn't (§ 5222-a(c), (d)). If you send the creditor's lawyer proof that all the money is exempt, the lawyer must have it released within 7 days. A creditor that disputes a claim in bad faith can be ordered to pay your costs, reasonable lawyer's fees, actual damages and up to $1,000 (§ 5222-a(g)).

What to check in your lease, contract or papers

  • The postmark on the envelope with the exemption notice — your 20 days start there.
  • The court, index number and judgment date on the restraining notice. Do you recognize the case? If not, you may never have been served.
  • Whether the forms were included. Without the exemption notice and forms, the restraint is void (CPLR § 5222-a(b)(1)).
  • Whether the notice has a bold legend saying the creditor is New York State or a local government, or that the debt is child support or maintenance. Some protections don't apply in those cases (§ 5222(k), § 5222-a(i)).
  • Your bank statements for the last two months: what was deposited, from where, and when.

What to document

  • The date you discovered the freeze and what the bank told you
  • Copies of the restraining notice, exemption notice and forms
  • Award letters for every benefit you receive
  • Pay stubs for the last 60 days
  • Bank statements for the last two months
  • Proof of when and how you sent the claim forms

What to do, step by step

  1. Call the bank and ask for the papers

    Ask which creditor and which court, the date the restraint was served, and how much is frozen. Ask whether the automatically protected amount was left available.

  2. Fill out both exemption claim forms

    Check every type of exempt money in the account, add your address, sign under penalty of perjury and make a copy for yourself.

  3. Send one to the bank and one to the creditor's lawyer within 20 days

    Mail or deliver them to the two addresses printed on the forms. Attach copies of proof — award letters, pay stubs, two months of bank statements — so the release can come faster.

  4. Watch for an objection

    If the creditor objects, it must serve you and the bank with motion papers within 8 days and the court must hold a hearing. Go to that hearing with your proof.

  5. Look at the judgment itself

    If you didn't know about the lawsuit, ask the court clerk for the file and consider asking the court to vacate the default judgment. If it is vacated, the account is released.

What not to do

  • Don't miss the 20 days. Missing it doesn't waive your exemption (CPLR § 5222-a(c)(5)), but your money stays frozen and you'll have to go to court to get it back.
  • Don't try to move or hide money in other accounts. A restraining notice served on you can forbid transferring your property, and disobeying it can be punished as contempt (CPLR § 5222(a), (b)).
  • Don't ignore the problem because the frozen amount is small — future deposits may also be frozen.
  • Don't sign a payment agreement just to unfreeze exempt money without understanding your rights.

When to send a demand letter

The exemption claim form does the work of a demand letter. If the bank froze money that should have been protected automatically — such as the protected amount where benefits were directly deposited — tell the bank and the creditor's lawyer in writing right away, cite CPLR § 5222(h) or (i), and ask for immediate release and refund of any fees (§ 5222(j)). If you sent proof that all the money is exempt and nothing happened within 7 days, write again and point to § 5222-a(c)(4).

When to go to court

You need court if the creditor objects to your claim (you'll get motion papers), if the 20 days have passed, or if you want the judgment itself vacated. You can ask the court, without a lawyer, to decide that your money is exempt; the notice you receive points to CPLR §§ 5239 and 5240, and the clerk may give you forms. A free legal services organization can help prepare an order to show cause.

What evidence to keep

  • The envelope with the postmark
  • Both completed claim forms and proof of delivery
  • Benefit award letters and pay stubs
  • Two months of bank statements showing the source of deposits
  • Any letters or court papers from the creditor

Figures that change

  • Protected balance when exempt payments were direct-deposited in the last 45 days (CPLR § 5205(l), § 5222(h)): $3,425 (effective April 1, 2024; next adjustment April 1, 2027) (as of 2026-10-30; Current dollar amount of exemption from money judgments (CPLR 5205, 5206; DCL 282, 283))
  • Balance a restraining notice can't reach (240 × $17.00 minimum wage — NYC, Nassau, Suffolk, Westchester): $4,080 (as of 2026-10-30; N.Y. Labor Law § 652 — minimum wage)
  • Balance a restraining notice can't reach (240 × $16.00 minimum wage — rest of state): $3,840 (as of 2026-10-30; N.Y. Labor Law § 652 — minimum wage)

Frequently asked questions

My Social Security is directly deposited. Can it be frozen?

Two layers protect it. Under federal rules, when a bank gets a garnishment order it must review the last two months and protect directly deposited federal benefits up to that amount (31 C.F.R. Part 212). New York also protects a set amount when exempt payments were directly deposited in the last 45 days (CPLR § 5222(h)), and Social Security itself is exempt; any extra frozen benefit money can be claimed with the form.

My account mixes wages and benefits. What is protected?

Exempt money doesn't lose its protection by being mixed. When you claim an exemption on a mixed account, the creditor must use an accounting method set by the statute (the 'lowest intermediate balance' rule) to release the exempt part (CPLR § 5222-a(c)(4)).

Can the creditor freeze a joint account with my spouse?

A restraining notice served on a bank reaches property in which the judgment debtor has an interest (CPLR § 5222(b)). Whose money is in a joint account is a question of fact, so if your spouse's own money is frozen, get legal advice quickly.

Want your own situation checked?

This page is general. Describe what happened, attach the letter or document you received, and get a free first answer — then, if you want, a full check against New York and federal law and a letter ready to send.

Check my situation — free

Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

Related questions

Related guides

This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.