This page explains New York law, and it focuses on accounts held by individuals. A restraining notice is a paper the creditor's attorney or the court clerk can issue after a money judgment, and served on a bank it freezes money in the debtor's accounts (CPLR 5222(a)). It is often the first sign of a judgment. KOR Law LLP's post-judgment defense practice handles restraining notices among the other enforcement devices. For the full picture of what a creditor can do, see what happens after a money judgment is entered against you in New York.
What does the restraining notice do, and how long does it last?
The notice must state the court, the judgment amount and the amount then due, and warn that disobeying it is punishable as contempt (CPLR 5222(a)). A bank served with a restraining notice may not pay out or transfer money it holds for the debtor, except to the sheriff or under a court order, for one year after service or until the judgment is satisfied or vacated, whichever comes first (CPLR 5222(b)). The restraint also catches money deposited after service. Two limits help the debtor:
- If the bank holds back twice the amount due on the judgment, the notice has no effect on other money (CPLR 5222(b)).
- A creditor needs the court's permission to serve a second restraining notice on the same bank for the same judgment, and may not serve more than two restraining notices a year on a natural person's bank account (CPLR 5222(c)).
If the bank cannot lawfully restrain the account, or restrains it in violation of the CPLR, it may not charge the debtor a fee for processing the notice (CPLR 5222(j)).
Is any money protected automatically?
Yes, two amounts, which the bank must leave alone without any claim from you:
| Situation | Protected amount | Rule |
|---|---|---|
| Exempt payments such as Social Security, public assistance, pensions or unemployment were deposited electronically in the 45 days before the notice | $3,425 for notices served on or after April 1, 2024, the Department of Financial Services' current figure (the statute's base amount is $2,500); if the balance is that or less, the notice is void | CPLR 5205(l), 5222(h) |
| Any account | An amount tied to 240 times the higher of the federal or state minimum hourly wage; if the balance is 90% of that or less, the notice is void, unless the court finds the money unnecessary for the debtor's reasonable needs | CPLR 5222(i) |
These protections do not apply where the creditor is the state or a municipality, or where the debt is for child support, spousal support, maintenance or alimony, if the notice carries the required legend saying so (CPLR 5222(k)). Money above these amounts can still be exempt because of where it came from; that is what the claim form is for.
How does the exemption claim work, step by step?
| Step | Deadline |
|---|---|
| Creditor serves the bank with the notice, an exemption notice and two claim forms; without them the notice is void | With the restraining notice |
| Bank mails the papers to you | Within 2 business days of receiving them |
| You send one signed claim form to the bank and one to the creditor's attorney | Within 20 days of the postmark on the bank's envelope |
| If you sent proof that all the money is exempt, the creditor must tell the bank to release it | Within 7 days of the postmark on your envelope |
| Creditor may object by motion, served on you and the bank | Within 8 days of the postmark or delivery of your claim form |
| If there is no objection, the bank releases the funds | 8 days after the postmark or delivery of your claim form |
| If there is an objection, the hearing is held and the court rules | Hearing noticed for 7 days after service; order within 5 days of the hearing |
You sign the claim form under penalty of perjury and may deliver it in person or send it by first-class mail; if the creditor has no attorney, the second form goes to the creditor directly (CPLR 5222-a(c)(1)). The exemption notice lists the kinds of money that may be exempt, from Social Security and SSI to pensions, child support and 90% of income earned in the last 60 days. Where an account mixes exempt money with money from unknown sources, the creditor must apply the "lowest intermediate balance" accounting method and release the exempt part within the same seven days (CPLR 5222-a(c)(4)). A creditor that ignores that duty is treated as acting in bad faith.
If the creditor objects, the bank keeps the disputed funds for up to 21 days unless the court orders otherwise, then releases them if no order arrives (CPLR 5222-a(e)). At a hearing, your signed claim form is prima facie evidence that the money is exempt, and the creditor has the burden of proving how much is not (CPLR 5222-a(d)). If the court finds the creditor objected in bad faith, it awards you costs, reasonable attorney fees, actual damages and up to $1,000 (CPLR 5222-a(g)). The dollar limits on other property are in what property a New York judgment creditor cannot take.
Missing the 20 days does not waive the exemption itself (CPLR 5222-a(c)(5)), but the money stays frozen until you act some other way. One route is a motion under CPLR 5240, which lets the court deny, limit or condition any enforcement procedure; we explain it in whether a court can limit or stop a creditor's collection efforts.
Can the creditor take the frozen money?
Not with the restraining notice alone. The notice only holds the money in place. To move it to the creditor, the creditor needs a further step: a sheriff can levy on the account by serving an execution on the bank (CPLR 5232(a)), or the creditor can ask the court to order the bank to pay. A levy on an individual's account must come with the same exemption notice and two claim forms, or it is void (CPLR 5222-a(b)(2)). That levy lapses after 90 days unless the money has been paid over, a court proceeding has been brought, or the court extends it (CPLR 5232(a)). The sheriff's side of the process is covered in what a sheriff can seize under a property execution.
The court route is a special proceeding against the bank, on notice to you, in which the court may permit you to intervene (CPLR 5225(b)). We describe it in how a turnover proceeding works and how to respond. Creditors often learn where an account is held through written questions to the debtor or to others; see whether you have to answer an information subpoena in New York.
What if you never knew there was a case?
The exemption notice itself says that if the judgment is vacated, the account is released. Under CPLR 5015(a), the court can relieve a party from a judgment for an excusable default, if the motion is made within one year after the judgment was served with written notice of its entry, or on other grounds including fraud, misconduct or lack of jurisdiction. The routes are explained in whether you can undo a default judgment in New York.
Find out which court entered the judgment, when, and whether you were properly served. The court system's CourtHelp guide suggests asking that court's clerk for the complete file, including the affidavit of service. It notes that a request based on bad service has no time limit, and that the request should tell the court if frozen accounts hold exempt money, so the court knows it is urgent. Also check the interest rate stated on the notice: under a 2021 amendment to CPLR 5004, judgments on consumer debt against an individual carry 2% a year rather than 9%. That change is explained in how long a New York judgment lasts and how much interest it adds.
What changes the answer for your account?
- Whose account it is. The exemption notice and claim-form procedure applies to a natural person's account (CPLR 5222-a(a)). A business account does not come with those forms; relief runs through a CPLR 5240 motion. A judgment on a personal guaranty, on the other hand, is a judgment against you as an individual; our article on LLC-owned property and personal guaranties explains how those guaranties arise.
- Where the money came from. Electronic deposits of exempt payments in the 45 days before service protect a set amount automatically (CPLR 5205(l), 5222(h)). Older or non-electronic deposits can still be exempt, but you claim them with the form.
- Who the creditor is. The automatic amounts, the no-fee rule and the claim-form procedure do not apply to the state, its agencies or municipal corporations, or to support debts, when the notice carries the legend the statute requires (CPLR 5222(k), 5222-a(i)).
- Whether someone else owns part of the money. A co-owner or other person with a claim to the funds may start a special proceeding to decide who owns them, and the court may void a levy or award damages (CPLR 5239). If the creditor named specific property in the notice, it is liable to an owner other than the debtor for damages the restraint causes (CPLR 5222(b)).
- The type of debt. If the 2% consumer debt rate applies and the rate changes while the restraint is in effect, the creditor must issue an amended restraining notice (CPLR 5004, 5222(a) and (c)).
For example: a frozen account that holds benefit payments
For example, imagine a retiree whose only regular deposit is a monthly Social Security payment that arrives by direct deposit. (This is a made-up illustration, not a real client or result.) A debt buyer's attorney serves a restraining notice on her bank on a Monday on a default judgment entered in Civil Court years earlier on an old credit card. Because a Social Security payment arrived electronically within the past 45 days, the bank must leave the protected amount in the table above untouched, and it freezes the rest.
The bank mails her the papers on Wednesday, two business days later, and she keeps the postmarked envelope. The following Monday, well inside the 20 days, she mails one signed claim form to the bank and one to the creditor's attorney, enclosing her award letter and two months of statements. The attorney now has seven days from her envelope's postmark to tell the bank to release the money. If the attorney neither releases it nor serves an objection within eight days, the bank releases the funds on the eighth day after the postmark on the form she sent the bank. Meanwhile she asks the Civil Court clerk for the file and the affidavit of service. It shows the summons was left at an apartment she had left years before, which she can raise in a motion to vacate.
Common mistakes after an account is frozen
- Counting from the wrong date. The 20 days run from the postmark on the bank's envelope, not from the day you noticed a declined card. Keep the envelope.
- Sending only one form. One signed form goes to the bank and the other to the creditor's attorney (CPLR 5222-a(c)(1)). The eight-day release clock runs from the form sent to the bank, and the seven-day release duty runs from the form sent to the creditor.
- Leaving out the proof. Award letters and two months of statements trigger the creditor's duty to release exempt money within seven days.
- Moving money after being served yourself. A debtor who is served with a restraining notice is forbidden to transfer property until the judgment is satisfied or vacated (CPLR 5222(b)), and refusal to obey a restraining notice is punishable as contempt (CPLR 5251).
- Paying the bank's processing fee without question. If the account could not lawfully be restrained, the bank may not charge you a fee (CPLR 5222(j)).
- Treating the release as the end. Getting exempt money back does not touch the judgment, so another restraint or a levy can follow.
What to do this week
- Ask the bank which account is restrained, how much is held, and who the creditor's attorney is.
- Find the bank's envelope, note the postmark, and count 20 days from it.
- Gather benefit award letters, pension statements, pay stubs and your last two months of statements for the account.
- Complete both claim forms, keep a copy, and send one to the bank and one to the creditor's attorney, by a method you can prove.
- Ask the clerk of the court that entered the judgment for the file and the affidavit of service.
- Pull together the papers on our judgment enforcement consultation checklist and speak with a lawyer before the 20 days run out.
Frequently asked questions
Does the bank have to warn me before it freezes the account?
No. The bank freezes the account when it is served and then has two business days to mail you the notice and claim forms (CPLR 5222-a(b)(3)). A bank's inadvertent failure to mail them does not make the bank liable, so check your account rather than wait for the envelope. A freeze can also follow a judgment entered on a confession, without any lawsuit; see whether a confession of judgment is enforceable in New York.
Can a restraining notice freeze my paycheck at work?
No. A restraining notice cannot be served on your employer to hold your wages or salary (CPLR 5222(a)). Wages are reached through a separate device with its own limits, described in how much of your wages a creditor can take in New York. Once pay lands in your bank account, the exemption notice lists 90% of income earned in the last 60 days as exempt.
The account is joint with a relative. Can the creditor hold all of it?
The co-owner can contest the freeze of their share. Any interested person may start a special proceeding under CPLR 5239 to decide who owns the money, and any interested person may ask the court for a protective order under CPLR 5240. Records of who deposited what matter most.
Can the creditor and I agree to release part of the money?
Yes. At any point in the claim process, either side may direct the bank in writing, dated after the restraining notice was served, to release funds to the other, and the bank must follow it (CPLR 5222-a(f)).
Which court handles a dispute about a frozen account?
CPLR 5221 sets the place. For a judgment from the Civil Court of the City of New York against someone who lives or works in the city, a special proceeding to enforce it goes to that Civil Court (CPLR 5221(a)(3)); for other judgments, it is generally the Supreme Court or a county court in the county where you live, work or do business (CPLR 5221(a)(4)). For a Supreme Court judgment against someone in Brooklyn, see how judgment enforcement works for a Brooklyn (Kings County) resident.
What happens once the judgment is paid?
The restraint ends when the judgment is satisfied (CPLR 5222(b)). The creditor must then file a satisfaction-piece with the clerk and mail you a copy within ten days of filing, and a creditor who fails to file within 20 days after full payment faces a statutory penalty of $100, or $500 if the judgment was $5,000 or more (CPLR 5020(a), (c)).