The creditor will go after the debtor’s bank account. When a bank account is seized, a creditor is attempting to obtain money a debtor owes. A creditor will generally file a motion in court to go after the money in a debtor’s bank account.

What Is a Frozen Bank Account?

A frozen bank account has been suspended from use. The account holder can’t:

  • Withdraw money
  • Deposit money
  • Write checks
  • Transfer money
  • Pay bills

Why Was My Bank Account Frozen?

A bank account is frozen because a creditor requested the money in the account because of:

Can the Creditor Freeze All the Money in My Account?

It depends on state law. In most states, a bank will freeze up to double the amount owed. For example, if the judgment is for $400. A debtor has $1,000, then the bank will freeze $800. However, if the debtor only has $600, the entire bank account is frozen.

Should I Continue to Make Deposits Into My Bank Account?

No. The debtor risks the new funds being frozen by the bank. If the money originally taken is less than the amount of the judgment, most likely the new funds will be frozen. A debtor should also stop making electronic payments, such paychecks.

Will I Receive Advance Notice of the Bank Seizure?

No. A debtor will receive notice, but it’s usually after the bank account was frozen.

Can I Get My Money Back?

A debtor has limited options to get the money taken by a creditor. One option is to claim exemptions.

Should I Talk to a Lawyer about Getting My Money Back?

Yes, a bankruptcy lawyer will advise you about all your options to get your money back.