Debtors Legal Advice - Frequently Asked Questions

Your accounts have been restrained or subjected to a lien because a valid legal claim, judgment, or perfected security interest has been enforced against your business. This typically occurs when a debtor is in default under a financing agreement, settlement, or court order, or when receivables have been legally assigned to a creditor.

Financial institutions, processors, and payment platforms are required by law to comply with Article 9, court orders, and garnishment directives once served.

The attorneys at MGR Law PLLC have years of experience in business law and have represented a wide variety of clients. We have a track record of success and are committed to providing high-quality legal services to our clients.

When accounts are restrained, financial institutions and processors are required to disclose and confirm:

• The amount of money currently held

• Where funds are being deposited

• Whether funds are being diverted

• Whether additional accounts exist

We require recent bank statements, processor statements, and proof of funds held in order to:

Confirm compliance with the restraint

Determine what funds are lawfully subject to turnover

Identify any attempted circumvention

Calculate settlement and release eligibility

Failure to provide these documents can delay resolution and may result in expanded enforcement.

In most cases, no — not through restrained accounts.

Once a lien or restraint is in effect, incoming funds are legally assigned to the creditor and cannot be used by the debtor unless a conditional release, court order, or settlement is in place.

Operating through frozen or diverted accounts can expose you to contempt, conversion, and additional liability.

There are only three ways:

Full payment of the obligation

A negotiated settlement

A conditional release approved by the creditor

No bank, processor, or platform can release funds without written authorization from our firm or the court.

Yes.
Most matters are resolved by settlement.

A settlement allows you to:
• Stop enforcement
• Regain access to accounts
• Resolve the debt for less than the full balance
• Avoid further legal action

Once a settlement is executed and initial funds are received, we issue a conditional release to temporarily lift the restraints while payments are made.

Ignoring a lien or restraint does not make it go away. It usually results in:

• Escalated enforcement
• Expanded asset searches
• Additional bank levies
• Processor shutdowns
• Court proceedings
• Personal liability exposure

The fastest way to regain control is to communicate and resolve.

All documents must be sent directly to our firm via the contact information provided in your notice.
Required documents typically include:

• Most recent bank statements
• Processor statements
• Proof of any funds held
• List of all financial accounts
• Merchant account details

These are used to verify compliance and calculate release terms.

All documents should be submitted to operations@mgrlawoffice.com.

Payments may be made at any time toward your outstanding balance. Making a payment does not waive your rights and does not require a settlement — but it does reduce your exposure and may support a faster release of funds.

We accept payments by:

• Wire Transfer
• Zelle
• ACH (where authorized)
• Attorney Trust or Law Firm Escrow

All payment instructions are provided directly by our firm after your matter is verified. Payments must reference your company name and file number so they are properly credited.

If your accounts are currently restrained, you may still make payments outside of the frozen accounts using approved methods such as wire or Zelle. Funds sent to our firm will be credited against your balance and may be used to support a conditional release or settlement.

To obtain payment instructions, contact our office using the information provided in your notice.