Companies to Unfreeze Bank Accounts
Top Companies to Unfreeze Your Bank Account - 2026
The daily withdrawals that take MCA payments are not part of the “freeze.” An MCA, like any contract debt, can’t just freeze your bank account. For that, it needs an underlying judgment from the court. That can happen in two main ways: You admit the debt in a ”confession of judgment” or by not answering the lawsuit the funder filed and letting a default judgment be entered. From there, the MCA attorney serves a ”restraining notice” on the bank, ordering it to freeze the account.
Under New York law, the notice freezes the money in the account up to twice what the judgment says is owed, while the restraining notice keeps alive for up to a year or until the judgment is paid or vacated. If the freeze is not cleared up promptly, the MCA can go back to court to get a formal ”turnover order” that seizes the money in the account.
There are a variety of ways you might notice the freeze. Your payroll, rent or vendor payment might bounce. You may find you can’t withdraw or transfer money, or deposits are posted but the balance can’t be touched. Your bank can send a hold or legal-order notice, while the MCA funder may call or text you directly to demand payment in full of the claimed outstanding balance.
What if the bank froze the account? If it appears a merchant has had repeated withdrawal attempts from an MCA, for example, the bank can step in and freeze the account to protect against fraud. Usually, once the issue clears up, so does the block. Speak to your bank directly to find out if your bank was served a restraining notice, by whom, when, and for what amount. That will tell you your next move.
Your Own Lawyer
Call your own lawyer first, don’t tell the MCA or its collectors anything. Everything you say can be used to harm your case. A good attorney will review your MCA agreement and look for red flags like a confession of judgment, a personal guarantee, and the circumstances that cause a ”default.” And any personal guarantee may let the funder go after personal assets.
Don’t settle with the funder without talking to your attorney. They’ll check the restraining notice and judgment for errors like how it was filed or served, and assume communications with the funder and court from a position of legal leverage.
If the judgment was entered after the wrong paperwork was filed or you were never properly served, an attorney can ask the judge for the judgment to be vacated. If the court agrees to vacate it, the freeze can be lifted. In addition, the MCA could be illegal to begin with: a thinly disguised loan, not a true purchase of receivables.
If the judgment came from a confession of judgment, New York law requires it be filed in the county where the defendant (you) have a place of business. Also, the confession has to be filed within three years of being signed. Otherwise, it can be attacked.
Another New York law allows anyone with an interest in a bank account frozen by a restraining notice to ask the court to change the conditions or drop it, regardless of the judgment and underlying debt. If you’ve been hurt by a freeze, talk to an attorney about whether you can challenge the restraining notice.
No matter how hard-nosed they are, MCA funders don’t necessarily want a long, expensive court fight. An MCA will often settle for a partial or discounted payoff, a structured payment plan, or release of the restraint while payments are made. Ask your attorney what an offer for settlement would look like for you.
If you qualify, you might want to consider filing for bankruptcy. Filing a bankruptcy petition instantly ”stays,” or stops, most efforts by creditors and courts against you, including the enforcement of judgments. That could unfreeze the account and give you a chance to recover and try to rebuild. As a small business debtor, you can qualify for Subchapter V if your total debts are less than $3,424,000 for cases filed on or after June 21, 2024.
How do you find good help? According to the FTC, debt relief scams often charge a large upfront fee then do nothing to lower or settle the debt. In New York, the State Bar offers a service that lets you meet with an attorney for up to a half hour for $35 or less.
In January 2025, the New York Attorney General won a $1.065 billion judgment against Yellowstone Capital, a merchant cash advance funder. The settlement canceled $534.5 million owed by more than 18,000 small businesses. The deadline to claim relief, January 9, 2026, has since passed. But if your agreement with your MCA resembles what regulators targeted in the Yellowstone suit, it may give you stronger grounds to challenge the judgment.
Once a freeze is lifted, the last thing you want to worry about is another one. Before signing an MCA, go through the agreement carefully, looking for a confession of judgment and personal guarantee, the consequences of default. Keep the payments current. Be careful of cash flow: once the MCA payments no longer match the receipts, some agreements let you request an adjustment. And at the first sign of trouble, contact an attorney to deal with the issue before it gets out of control.