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How to Pay Bills when Account is Frozen
A friend had his bank account frozen and closed due to two ChexSystems reports. He needs his money in order to pay the debt of the last report and take care of bills. How can he get access to his money if he doesn't have another bank account?
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 There may be some miscommunication here. ChexSystem's reporting function won't freeze an account. If you owned a business and accepted checks for payment, you could subscribe to ChexSystem and if the person offering you a check were shown to have written hot checks, you could then decide if you wanted to accept or refuse the payment.
A deposit account at a bank is frozen, that is, no withdrawals are allowed as a result of some legal action. It could be that the IRS will freeze an account in the process of collecting taxes owed, or a court may freeze an account when a judgment is in favor of someone to whom the bank customer owes money.
When a legal authority freezes an account, the bank has to respond and is prohibited from paying any items until the funds are taken by the legal authority, or they release the freeze. Opening a second account wouldn't change this whether the second account was at this bank, or another. Any other account would be subject to the freeze as well so long as it was a known account.
The answer is to figure out who placed the freeze, under what authority, and satisfy the obligation with them. Your friend needs to pay that bill, as whomever is collecting it is very serious about getting payment. Having an attorney assist them may be in order, especially if your friend wants to fight that collection action.
Published on BankingQuestions.com 10/30/08
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