My parents were sued by the home owners of their old house, they were sued for “mental anguish and selling the house with a leak in the pool” (which it didn’t) the home owners won the case and my parents chose to appeal, that’s where the case is as of now and randomly after a year of the case my parents bank accounts got locked up by the attorneys of the new home owners is this legal?
They can't just walk into the bank and lock up your account. But the bank wouldn't (most likely) do that anyway. In order to freeze an account, they need an order from the court. To get that order, they usually need to give the other party (your parents) notice of the hearing, or an opportunity to be heard soon AFTERward. The reason for freezing accounts like this is to make sure that someone who owes money -- or who might end up owing money -- doesn't spend it all or move it to a Swiss bank account or something. Your parents should be able to get before the judge and present their argument why their accounts should not be frozen -- they have other assets, they're not likely to disappear, they think they'll win their appeal, etc. The judge should at least allow them to use the account for "ordinary living expenses," so they can buy food, pay their bills, etc.
You should have them talk with a collections attorney on this.
A judgment was entered against your parents. Unless enforcement of that judgment was stayed by a court during the pendency of the appeal or the judgment was bonded then it can be collected upon.
Yes, in Texas, a bank account can be frozen for failure to pay a judgment. After judgment, the creditor can seek appointment of a receiver who acts as an officer of the court. The receiver will send the bank a copy of the order showing his authority and the bank is required to comply. As the courts of appeal have said, the judgment debtor is not entitled to additional notice of a hearing seeking the appointment of a receiver because the judgment debtor should know that the judgment creditor will be seeking post judgment remedies if the judgment is not paid. It may be best if you try to compromise with the creditor at this point by contacting the receiver, or better yet have your attorney call the receiver.
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