frozen bank accounts
What exactly is a frozen account?
A frozen account is known as an account where no depositor can make withdrawals or purchases. The main reason an account can be frozen is if the account owner does not pay for purchases that are charged to their account. Deposits can be made, but the money that is deposited cannot be used as it is frozen in the account. Even checks written against the account will not be valid as long as the account remains frozen.
Title – Who can freeze bank accounts?
Every time you make a transaction with a company and you have to return the transaction. This creates debt. The person you owe money to becomes your creditor. As such, if you don’t pay your creditor when required, the creditor can freeze your account. All the creditor has to do is enter judgment against you. When this happens, your account is frozen until you pay what you owe.
Typically, when your account is frozen, you’ll get a notice from your bank telling you about your situation and what you need to do to unfreeze it. There should be a number for an attorney on the list. You will need to retain the services of an attorney to unfreeze your bank account. Even if your bank account is frozen, no creditor can withdraw money just because the money is there. To get the money owed, the creditor must obtain a rotation order from a judge.
If during the time your bank account is frozen, you write checks against your account, you’ll need to take steps to communicate with everyone you feel like you’re sending checks to. This is because those checks will bounce, since the money is not usable. Just reach out to people and let them know what happened. Explain that your account has been temporarily placed in a frozen state and that you are taking steps to unfreeze it. Simply ask them to hold the checks until you notify them otherwise. Once you contact them, they can cash the checks.
Until you resolve your situation, you should avoid using your bank account for the foreseeable future. This means you can’t make a deposit and you must also cancel your direct deposit if you have one. If you have bills to pay, ask a friend or family member to do it for you.
Title – Can the government freeze your bank account?
The government generally cannot freeze a bank account. Since you’re not actually buying anything directly from them, they have no way of storing your money. Furthermore, the government as an entity does not have or own a bank. They use one. This is how they pay their bills. But technically speaking, they have no way to store your money.
The only time the government can freeze an account is for security reasons. For example, if they suspect that terrorists are using money in an account, the government can come in and freeze the account so the money cannot be used.
Bank of America – 1-800-432-1000
J.P. Morgan – 1-800-935-9935
Wachovia Bank – 1-866-647-7365
Wells Fargo Bank – 1-866-647-7365
Washington Mutual Bank – 1-800-788-7000
SunTrust Bank – 1-800-786-8787
US Bank – 1-800-872-2657
Bank of Regions – 1-800-734-4667
Bank Branch and Trust Company – 1-800-226-5228
National City Bank – 1-888-622-4932
HSBC Bank USA – 1-800-975-4722
World Savings Bank, FSB – 1-866-647-7365
National Bank – 1-800-841-9986
PNC Bank – 1-888-PNC-BANK
Key Bank – 1-800-539-2968
ING Bank – 1-800-ING-DIRECT
Merrill Lynch Bank USA – 212-449-1000
Sovereign Bank – 1-877-768-2265
Comerica Bank – 1-800-292-1300