How to Deal With Frozen Bank Accounts

Hi! It's Sade. Welcome to our Freebie Friday video.

Today we're talking about bank

accounts and...imagine for instance waking

up one day trying to do a transaction

and finding out that your bank accounts

have been frozen. Most people go into

panic mode. So the question today is "What

do I do if I find out that my bank

accounts have been frozen? There are

a few things that you can do to be

proactive and try to resolve the

situation and release your bank accounts

as quickly as possible. The first thing

to do is to contact your bank right away.

Contact your bank and find out as much

information as you can on the

garnishment, on the freeze on your

account. Who's the creditor and how much

are they claiming that you owe and

things like that. Once you do the

verbal conversation over the phone with

with the bank or if you go in person, they

would usually give you a printout of

what's going on. A lot of banks would not

want to email it or fax it but they

would print it for you if you go

physically or they'll put it in the mail.

They're required to do that, to notify

you of what's going on. The second

thing you want to do is to contact your

employer right away to say "Please don't

do my direct deposit into my accounts

any more, until I tell you to do so."

So, you would want to redirect your payments -

your wages and compensation directly to

your house or some other source. The

third thing you want to do is to contact

all vendors or billing companies that

usually take money out of your

bank accounts monthly, and tell them to

not do it for the next couple of months

at least, until you resolve this

situation. The fourth thing you

want to do is to try to get a copy of

all your bank statements going back as

far as six months. And you want to trace

the money that's currently in the

account to the source. For instance is

the money that's sitting in your

account coming from just your

compensation for work done? Is it coming

from child support payments? Is it coming

from insurance payouts? Is it coming from

a sale of a home, a car, a boat? Where did

the money come from that's sitting in

the account?

Make sure you try to trace everything

back, put everything together in an

organized manner in a word document or

spreadsheet , and also figure out which

accounts have somebody else on there

with you, and whether the other party

deposited money into the account as well.

That could be your spouse, it could be

your children, or relatives. The last thing

you want to do once you've done all that

is to contact a lawyer who knows how to

do this kind of collection defense and

ask them for the next best move.

The lawyer will verify if the judgment is

valid and the amount is correct, and then

the lawyer will figure out whether

you want to enter into a settlement

agreement with the creditor so that this

is done and over with, and your accounts

can be released, you can go on with your life.

Usually the creditors are not as

incentivized because now they have money

potentially in their hands. So your lawyer

would figure out all of that and whether

you have objections or exemptions that

you can claim, and then go from there.

So, that's the best way to do it but we'll

have to advise of course to always try

to handle valid judgments way ahead of

time because these types of situation can

be avoided, and because the judgment just

keeps increasing because of the interest

rate that's on it. So try to settle

things sooner than later so that this

kind of situation doesn't happen too

often. And that's our suggestion for how

to go about handling bank accounts that

are frozen. And if you have any specific

questions about your situation make sure

to talk to a lawyer and they will be

able to guide you. So, thank you as

always for watching our videos and we

hope this has been helpful. We'll talk to

you next time, and until then, have a

happy Friday.