Can you qualify for credit card debt forgiveness if your bank account is frozen by a debt collector?

MoneyWatch: Managing Your Money Can you qualify for credit card debt forgiveness if your bank account is frozen by a debt collector? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht April 20, 2026 / 10:52 AM EDT / CBS News Add CBS News on Google A bank levy is serious, but it doesn't necessarily close the door on getting rid of your debt through other means. John Scott/Getty Images As today's economic hardships compound, they're bringing into focus a sharper view of how precarious many people's finances have become over the last couple of years. Inflation-weary households are paying a lot more for housing, groceries and gas, borrowers are carrying record-high credit card balances and the general economic uncertainty has made it harder for many borrowers to dig out of debt. Against this backdrop, debt collectors have been active, and for some delinquent borrowers, that activity has escalated to the most disruptive step a debt collector can take: a bank levy. Waking up to a frozen account via a bank levy is one of the more jarring financial shocks a person can experience. Payday hits, your bills are queued but then nothing moves because a debt collector has obtained a court judgment against you and the funds you depend on are suddenly out of reach. But a frozen account doesn't happen without warning, even if it feels that way. By the time a debt collector executes a bank levy, a court has already issued a j...