Can a bank freeze a customer's account in another bank?
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It's possible. If you keep your deposit accounts with Main Street Bank and have a delinquent loan account with Side Street Bank, Side Street can initiate a legal action that would enable it to obtain an attachment or garnishment of funds in your account at Main Street. Once the court issues a judgment against you, confirming that you owe the debt and ordering you to pay, Side Street can levy against the attachment, forcing Main Street to pay over your funds to Side Street. The details vary from state to state, but judgment creditors generally get the ability to obtain funds from a judgment debtor's accounts.
Some of your funds in Main Street Bank might be protected from the process. That will depend on the type of funds in the account, specifically, whether any of the funds are from Social Security or other federal benefits, and on state law.
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It's possible. If you keep your 