Why was a deposit returned Account Frozen? This can be due to a divorce judgment, IRS tax lien, wage garnishment, court order or other legal reason that the bank can be required to freeze an account. There's a good chance you won't be able to do any business with that bank in the future and you'll have to find another bank.          The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. google_ad_height = 125; Generally, an account is frozen because you owe someone money. Your bank account is released immediately once the judgment is vacated. Freezing of accounts means you will not be able to undertake any transaction in your banking account until further notice. Now, how do you define an illegitimate transaction you need to check the rules for the same or with the bank. And because these payments will bounce, you'll probably incur a non-sufficient funds (NSF) charge. (To learn more, see Using Exemptions to Protect Property From Judgment Creditors.). As noted above, a frozen account means you won't have access to any of your money until the situation is resolved. When a bank blocks your account, it means there may be a problem with your account or someone has a judgment against you to collect an unpaid debt. Is it absolutely necessary to go to court in order to vacate the judgment? If they won’t, you need to take further action. 2 Features Although money cannot be withdrawn from a blocked bank account, funds can still be deposited, either … "Garnishing Federal Benefits." Consider consulting legal help. If the funds in your frozen bank account includes nonexempt funds, or recent wages, it is best to go to court. Banks can freeze bank accounts if they suspect illegal activities such as money laundering, terrorist financing or writing bad checks. If a debt collector does levy my funds, is it possible to receive my money back? Depending on the state where you live, there are limits to what type of income can be taken from your account. If they did not receive a notice after the account was frozen, they can call the bank and ask for the lawyer's name and phone number so they can attempt to settle the account. A dormant account is one in which there is no transaction for the last 24 months. Once your account is frozen over unpaid debts, it is crucial to get the creditor's attorney’s information from your bank immediately. A levy is the legal seizure of property to satisfy an outstanding debt. It cannot be lifted until the debt is paid in full. . If you have any unpaid debts, your creditors can get the bank to freeze your account in order to satisfy your obligations.