A frozen bank account is a bank account that you cannot access because a creditor has placed a restraint on it. When your bank account is frozen, you can put money into it, but you can’t take money out, according to http://www.neweconomynyc.org.
Why is my bank account frozen?
A frozen bank account is a sure sign that a creditor or debt collector has obtained a court judgment against you (or your joint account holder, if you have a joint bank account). A creditor or debt collector cannot freeze your bank account unless it has a judgment. Judgment creditors freeze people’s bank accounts as a way of pressuring people to make payments.
Why does my frozen bank account have a very large negative balance?
A judgment creditor typically puts a hold on your bank account for twice the amount of the judgment against you. This hold shows up on your bank account as a negative balance. You do not actually owe all of this money to the judgment creditor. Rather, the amount you owe is the amount of the judgment.
Does my bank have to give me notice before freezing my account?
No. Unfortunately, the law provides that when the bank receives a restraining notice, it must freeze your account immediately, before notifying you. That is why most people discover that their account is frozen when they try to use their ATM cards and they suddenly do not work.
Does a judgment creditor have to give me notice before freezing my account?
A judgment creditor does not have to give you specific notice before freezing your bank account. However, a creditor or debt collector is required to notify you that it has filed a lawsuit against you; and that it has obtained a judgment against you. If your first notice of the court case is a frozen bank account, you have not received proper notice under the law.
Source: (Punch Newspaper )