How to Legally Unfreeze a Frozen Bank Account Why Bank Accounts Get Frozen If you in arrears to a creditor, they have the right to request a legal judgment from a state court awarding them powers to collect what they are owed. Common collection tactics can include wage garnishments and property liens. One particularly powerful tool for enforcing court judgments is the ability to freeze a debtor’s bank accounts. Banks, credit card companies, hospitals, and other large creditors can easily discover where a person is banking. Once a debtor’s bank is located, and a judgment is in hand, the creditor can demand that the bank freeze the debtor’s accounts. Creditors can place a hold on the account for as much as double the actual judgment. The initial freeze is more than a scare tactic. It can be a devastating experience in which all or most of your liquid assets are unavailable. That means you can’t write checks or make payments with the money you earn. Worse…
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