What is an account freezing order and how can it be used in asset protection planning?

An account freezing order is a form of asset protection used to protect a person’s assets from being taken by creditors. It is also known as a “freeze” or “restrain” order. An account freezing order prohibits certain activities related to an individual’s accounts, such as opening new accounts, transferring or withdrawing unspent money from existing accounts, or borrowing against accounts. It is generally used when an individual anticipates that creditors may seek to attach their accounts in order to collect an unpaid debt. In North Carolina, an account freezing order is typically issued at the request of the debtor and is granted by a court. The debtor must provide sufficient evidence to the court that the freezing order is necessary to protect the debtor’s assets. Once the court issues an account freezing order, no person or entity is allowed to take any action on behalf of the debtor with respect to the frozen accounts. An account freezing order can be used as part of an asset protection plan in North Carolina. It can be used to protect a debtor’s assets against the claims of creditors and ensure that the debtor’s assets are not taken to satisfy a debt before the individual has a chance to restructure or negotiate the debt. It also prevents the debtor from taking any action that might further deplete his or her assets.

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What is an account freezing order and how can it be used in asset protection planning?

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