Creditors that have a court judgement against a debtor can have a savings or checking account frozen in order to garnish funds, states Nolo. Creditors can send attachment papers to a bank, which gives them the authority to take money out of an account. There are some legal limitations on the types of funds creditors can freeze.Know More
Creditors are legally mandated by the U.S. Department of Treasury to avoid seizing a percentage of monies obtained from federal benefit programs, such as Social Security, states Cleveland.com. Under the law, creditors must leave at least two months worth of funds from benefit programs in an account. These funds are automatically protected from sudden account freezes. A bank that receives an attachment from a creditor must check the account for federal benefits before allowing the removal of money. Creditors are allowed to take money from these accounts, as long as it is above the two month limit.
Federal benefits that are not legally protected from credit freezes are child support money owed to government agencies, student loans and taxes, states Cleveland.com. Government agencies, such as the IRS, can freeze accounts without a court judgement. As noted by Nolo, it is best to avoid having a bank account frozen by making payment arrangements with creditors.Learn more about Banks
Reasons that a bank account may be frozen include compliance with a court order, the account holder being declared bankrupt and insufficient funds in the account. A bank account may also be frozen if the bank is notified about a dispute concerning the ownership of funds or account operation, or to protect the account holder, the bank or a third party who has a reasonable interest in the account.Full Answer >
In finance, a lodgment is a deposit of funds into a bank account, according to Oxford Dictionaries. The term originated in the late 16th century and comes from the French word "logement," which derives from the Old French term "loge," meaning a dwelling.Full Answer >
In many cases, it is not possible to deposit funds for one bank into another bank's ATM. There are some occasions in which banks that share a common ATM network can allow customers of other banks to make deposits.Full Answer >
The routing number for an account held by Compass Bank in Texas depends upon the geographic location of the branch associated with the account. Compass Bank employs multiple routing numbers in Texas to control and identify bank accounts.Full Answer >