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
To open a bank account, bring a Social Security card, identification card, a driver's license and a passport if applicable, according to Commerce Bank. Other documents that are accepted include an ID from a foreign country.Full Answer >
To locate a deceased person's bank account, an individual must determine if the bank is open, closed or has merged with another bank. Proof of ownership of the account must be provided before access is allowed, states the FDIC.Full Answer >
To close a bank account, send a written request to close the account, along with contact information, personal information, account number and any other required documentation, according to About.com. Banks send the remaining account balance and a letter of verification once the request to close the account is finalized.Full Answer >
Any bank account outside the United States is referred to as an international, or offshore, bank account. Since the money in such an account is not held by any American bank, it does not comply with the regulations and laws set by the America’s banking institutions, explains MoneySuperMarket.Full Answer >