Why is My Bank Account Frozen?
No one likes having their bank account frozen or closed, but it happens and it is not as disastrous as it seems. Banking institutions will work with you to figure out how much you owe, if you can cover the amount owed, and if your bank account will remain open or frozen. The reality is that you have to pay what you owe, and receiving a writ of execution is the final straw when it comes to paying your debts. There is nothing you can do at this point but pay the amount or your bank account will remain frozen or unuseable.
How can someone freeze a bank account?
Bank accounts are frozen by your banking institution. There are a variety of reasons why your bank account may be frozen, but the most likely cause is that you did not have the funds to cover a wage garnishment and your banking institution does not believe you will have the funds in the future.
What does a Writ of Execution have to do with my bank?
Writs of Execution have great power over banking institutions. It is against the law for a banking institution(s) to ignore a writ of execution and this will lead to bank accounts becoming frozen without the owner’s knowledge if they do not have the funds to cover the debts owed. Judgement debtors will claim that it was unexpected, however, if the debts have already gone to court, a judge has made their judgement. It is not unexpected for judgement debtors to claim ignorance and play the victim.
Can I restore my bank account after a Writ of Execution?
It depends upon the banking institution and how the bank account was closed/frozen. In most cases, banking institutions will work with the judgement debtor to restore their account if they have the funds to cover the writ of execution. After which, judgement debtors will often contact the person or business whom the debt is owed and work out a payment program to remedy the situation without further penalties. If you are concerned your bank account may be frozen or closed over a writ of execution, contact their customer support to figure out if you should be prepared or not.
Bank accounts get frozen and closed all the time, however, if you rely on your bank account for doing daily business, it can be extremely troublesome to be caught off guard by a frozen bank account. The reality is that you should be aware of all outstanding debts and if any of these debts have made their way to the courts. If they have, and the court has made a judgement against you, it is in your best interest to contact the person or business in which you owe said debts and work out a payment program. Avoiding the judgement will only lead to a garnished pay check, bank account, or brokerage account. In this case, your accounts have a good chance of being frozen and closed if there is not enough money to cover the outstanding debt(s).