A frozen bank account occurs when a creditor sues you for unpaid debt and receives a court order to freeze your account. You will need a lawyer to unfreeze the account. To avoid this, pay bills on time, notify creditors of address changes, and respond to lawsuits. Government assistance and some funds may be exempt from freezing. Stop direct deposits and automatic payments, and contact check recipients to avoid cashing.
A frozen bank account occurs when you owe a debt to a creditor that you haven’t paid; the creditor will then sue you in court. If you do not respond to the lawsuit, the creditor can then receive a court order and freeze your bank account. Laws differ in different states and countries, but in most cases, money cannot be withdrawn from a frozen bank account immediately; this will require a second turnover order from a judge. Usually, the funds will simply remain frozen until the case is resolved.
Unfortunately, in many cases there is nothing you can do about a frozen bank account yourself. Going into the bank will make no difference, because they are required by law to keep the account frozen. You will need to hire a lawyer and go to court to unfreeze your bank account and deal with the creditor who blocked your account. Keep in mind that creditors cannot freeze a bank account without notice; you will first be notified that you have been subpoenaed in court.
To avoid having your bank account frozen, always try to pay your bills on time and always notify your creditors if you move. If you can’t pay your bills on time, contact your creditors to determine if you can work out a payment plan in exchange for closing your account, for example. Finally, if you get notified that you’ve been sued by a creditor, respond to the lawsuit before it turns into a frozen bank account. If you receive notification from the bank that your account has been frozen, it will usually be accompanied by a letter with contact information for an attorney; call that attorney as soon as possible to begin reversing the process.
Meanwhile, there are a few things to keep in mind while your bank account is frozen. First, in many cases, government assistance or some other funds are exempt from freezing; this could include veterans benefits, Social Security income, unemployment, alimony or other state benefits, among others. Proof will be required to unlock these funds. Also, immediately stop any direct deposits into your account, as well as any automatic bill payments, and find another place to cash your paychecks in the meantime. If you have written checks that have not yet cleared your account, contact the people to whom you wrote the checks and ask them not to cash it.
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