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What Does 'Frozen Account' Mean?

Can you please explain to me what it means when an account is frozen? What happens with the money that's in the account or money that supposed to go into the account?

Untitled

An account may be frozen by a number of reasons. Often it means a court is seeking those funds as payment for an obligation owed. If a specific amount is sought, and there is more in the account, some funds, (the excess) may still be available. More often than not, there is not enough money in the account and any deposits made may be frozen with the existing funds.

There are variances depending on who and why the freeze is occurring. Ask your bank or your attorney about the situation, if this happens to you.

Published on BankingQuestions.com 11/19/09