Creditors can legally require a bank to freeze a bank account for a few weeks or until the debt is paid. Nolo explains that any funds that are in the account at the time of the levy are used to satisfy the debt, which can lead to bounced checks and additional bank fees. Bank garnishments that result in account freezes are activated when a creditor wins a court judgement.Know More
Putting additional funds into an account that is frozen may lead to those funds being inaccessible as well. An account can be frozen quickly, and account holders generally only receive notice of the situation once it has occurred. Once an account is frozen, the account holder must act quickly to lift the freeze, according to legal advice site Lawyers.com. This requires the account holder to file legal papers with a court stating why an exemption from the freeze is warranted. Proving legal exemptions requires turning in copies of detailed paperwork, such as paycheck stubs, bank deposit receipts, government, insurance, pension and real estate documentation. Income from alimony, child care, social security and disability may be exempt from such freezes.
About.com advises that the best way to avoid having an account frozen by creditors is to contact them to make arrangements to make payments on the debt owed.Learn more about Bank Accounts
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Opening a bank account online requires providing the bank with identification, determining the type of account that you want and funding the new account once it has been approved. There are government rules regarding identity verification that govern the opening of all bank accounts, according to Ally.com.Full Answer >
According to BALANCE, a financial fitness program, when a charge hits your bank account and there are insufficient funds to cover it, either your bank may refuse the charge or allow your account to go into a negative balance. If the bank allows an overdraft, it typically applies a charge for each item that overdraws the account, and these fees can stack up.Full Answer >
A joint bank account, according to Lawyers.com, is a shared bank account that two or more people have complete access to. When a joint account is established, any of the account holders may deposit or withdraw funds without the consent or knowledge of the other account holders.Full Answer >