There may be a number of reasons why the bank freezes the Bank Account.
It can be surprising to find that your bank account is frozen. You still can access your freeze bank account, but it will be only limited access. You can still check your transaction and receive some deposits. However, you will not be able to withdraw or transfer your money until the matter of frozen is get clear.
Contact your bank early as possible if your account gets frozen. Bank accounts are frozen due to the number of different reasons, and specific steps are needed to deactivate the frozen account for each reason. The following are the top three reasons why a bank account can be frozen.
The reasons are -
1. Extraneous or illegal activity.
When the person is using the bank account illegally, such as for money laundering or for taking back cheques. Sometimes a bank also freezes the accounts associated with terrorist financing. This includes receiving suspicious payments from abroad or depositing suspiciously large amounts of money, resulting in the suspension of your account. Even gambling can cause an account to be frozen if it is suspected of suspicious activity.
For these cases, it is unusual for bank accounts to be frozen, especially for consumers who are innocent. It is best to get the help of a lawyer to clear up this type of case.
2.Unpaid loans through lenders
Lenders can access your account for outstanding loans. However, lenders must obtain approval from the courts before taking this action. For account holders who have loan accounts in the same account as their bank account, the lender can access the checking or savings account to deposit payments on the defaulted loans without filing a lawsuit or decision. ۔ Generally, through these accounts, you must first sign the fine print, which gives the bank this option.
Once your account is frozen on unpaid debts, it is important to get lawyer information from your bank immediately. You need to better understand what's going on in your account and manage payments. Unfortunately, ignoring a frozen bank account can make this problem worse, which can lead to a reduction in your credit score and an increase in bank fees.
3.Unpaid debt to the government
Individuals who have student loans or government tax deductions can also find their bank accounts frozen. For unpaid taxes, the IRS may impose a tax that cannot be removed until the loan is fully paid.
It did not require any judgment for unpaid student loan including capturing your tax return or guaranteeing a percentage of your salary each month. When your loan is predetermined, your federal lenders can potentially guarantee wages and taxes without having to follow a decision with the courts. Student loans expire only after payment. They just disappear from bankruptcy under certain circumstances.
"In the event that your bank account has been frozen due to debt collectors or suspicious activity, your bank account should not be cleared of funds. Depending on the state in which you live, there are limits to what kind of income your account can take. For example, in some states, it is illegal for lenders to withdraw social security benefits, child support, workers' compensation and more. However, you need to file an exemption claim within 10 days after your account is frozen. "
Consult with the expert to help you to get rid of your bank account. The Consumer bankruptcy lawyers don't force people to pursue bankruptcy, however instead assist you to know the legal actions that lenders will take, further as your rights in these situations.