My bank acct was frozen by a debt collector but I don't have the money to pay it off now, the debt collector told me I could make a payment arrangement with them but my unemployment check is not enough for me to start paying off my debt and he told me there's interest building on the debt everyday is this true and what steps if any can I take to stop the interest from building up everyday, and get them to unfreeze my bank acct

If they attached your bank account they already have a judgement against you. They do not intend to release your bank account they plan on taking all the money out of it, and any more you ever put in it.

They would have garnished your pay had you been working.

So if this is a valid debt, forgot that bank account it is history.

I never received notice of a court date to address this debt and I thought the debt collectors had to get permission from the courts to freeze your acct, but my main concern is there interest really building everyday on the debt I owe there by increasing what I owe

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Originally Posted by NICKY2678

I never received notice of a court date to address this debt and I thought the debt collectors had to get permission from the courts to freeze your acct, but my main concern is there interest really building everyday on the debt I owe there by increasing what I owe

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Yes they do need permission from the courts, which they obviously got. You may not have received notices, but they had to have made a good faith effort to serve you, otherwise the court would not have granted the judgement.

And yes, when you borrow money, you pay interest for the use of that money. Interest can continue to accrue as long as the debt is unpaid.

My understanding is that unemployment compensation is exempt from creditor's claims. The bank in which the account was frozen should have sent you paperwork giving you the information regarding the levy and exemption forms to complete if the deposited funds were indeed unemployment compensation. However, there is a time limit attached to your response after you receive the paperwork. Possibly consulting an attorney would help, maybe check to see if there is a volunteer attorney program where you live. This is just my opinion, hope it helps.

I just had a similar experience but I received a court date notice and on the notice it states that if you are receiving unemployment you are exempt from the freeze but you have to get a court date