Short answer. Yes, for 120 days. Once the court authorizes you to sue the company, the same order can forbid it from transferring or otherwise disposing of the disputed debt within one hundred twenty days from notice of the order, and disobeying that order can be punished as contempt.
What the law says
forbid a transfer or other disposition of such interest or debt within one hundred twenty days from notice of the order, and may punish disobedience of such order as for contempt.
Rule 39, Section 43 — Proceedings when indebtedness denied or another person claims the property. Read the full provision →
How the authorization to sue arises
Rule 39, Section 43 applies when a third party denies owing a debt to your judgment debtor. If it appears that a person or corporation, alleged to have property of the judgment obligor or to be indebted to him, claims an interest in the property adverse to him or denies the debt, the court may issue an order authorizing you, the judgment obligee, to sue that person or corporation directly to recover the disputed interest or debt.
The 120-day freeze on the disputed debt
The same order that authorizes the suit can also protect what you are suing over. The court may forbid a transfer or other disposition of such interest or debt within one hundred twenty days from notice of the order. So yes — once this order is issued and the company has notice of it, it is barred from transferring or otherwise disposing of the disputed debt for that 120-day window.
Disobeying the freeze is treated as contempt
This is not merely advisory. The same provision authorizes the court to punish disobedience of such order as for contempt. A company that transfers or disposes of the disputed debt in defiance of the order exposes itself to contempt proceedings, which gives the freeze real teeth beyond simply being a request the company is free to ignore without consequence.
The order can later be modified or vacated
The freeze is not necessarily permanent or fixed once issued: such order may be modified or vacated at any time by the court which issued it, or by the court in which the action is brought, upon such terms as may be just. Circumstances that develop after the order is issued — including how the recovery action itself proceeds — can lead either court to adjust or lift the restriction.
Why the freeze matters for your recovery action
Without this 120-day window, a company denying a debt could simply move or spend the disputed funds while the recovery suit you were authorized to bring is still pending, leaving a judgment in your favor with nothing left to collect against. The freeze exists to preserve the very thing the authorized action is meant to recover, so that winning the underlying suit is not made pointless by the debt having already disappeared.