Have A Frozen Bank Account? Understand Your Choices

If you happen to find that you have a frozen bank account, there are a couple of ways to restore your account.

Why Is It Frozen?

The first thing to do is find out why your bank account is frozen. This is most likely because you have an unpaid debt. The person or business you owe contacted a collection agency to receive their unpaid bill(s). The collection agency then made a case against you, presented the case to a court, and won a judgment in their favor. Your account was then frozen, meaning that you can no longer access the funds.

What Can I Do?

There are a couple of ways for you to release a frozen bank account:

  • The easiest way to unfreeze your account is to pay your debt (a.k.a. “vacate the judgment”). If your account was frozen because of a past-due collection, simply pay the debt and take proof of payment to your courthouse or bank. Collection agencies will not unfreeze your account for you; you must take matters into your own hands and provide proof of payment to restore your account.
  • If your frozen bank account contains ONLY exempt benefits such as Social Security, a creditor cannot freeze your account. Simply call your creditor’s attorney and show proof (usually three current bank statements) that your account contains only exempt funds. Your account will then be released.

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