Bank account frozen: What should I do?

Still nothing regarding my account... I’m calling the IRS every single day, and they just claim they haven't even seen my case yet. I managed to pull some strings today, though, so hopefully they'll kick things into gear and I'll have my funds back within a week. It's a nightmare when $233 ends up freezing two whole paychecks. Now they've gone and blocked my child tax credits too; apparently, I have to file some formal request just to stop them from seizing that. What a joke. If they had just sent me one decent warning, I would've settled the debt and moved on from Verizon.

Frank Scott12 said:Still nothing regarding my account... I’m calling the IRS every single day, and they just claim they haven't even seen my case yet. I managed to pull some strings today, though, so hopefully they'll kick things into gear and I'll have my funds back within a week. It's a nightmare when $233 ends up freezing two whole paychecks. Now they've gone and blocked my child tax credits too; apparently, I have to file some formal request just to stop them from seizing that. What a joke. If they had just sent me one decent warning, I would've settled the debt and moved on from Verizon.

Child support and benefits are protected by law, so they should have released those to you regardless of the freeze.

Starting Monday, you'll need to set up a separate account specifically for those protected funds so you can actually access them.

I’m circling back to the question I posted earlier here:
So, I’ve got this student checking account at Chase, but I haven't been a student for over a year now. Every time I walk into the branch, the staff asks if I want to switch to a standard account, and every single time, I just end up grabbing a handful of flyers like I actually need to sit down and weigh my options. Recently, a friend of mine who works over at Chase told me I should probably just get it sorted, because apparently, Chase has the right to freeze my account just to force my hand on the matter. Is that actually true? Can they really pull a move like that? I'm not even overdrawn or anything, so it feels a bit heavy-handed.

I can't even block you—not because I want to, but because you haven't even changed your profile picture yet. That’s honestly some of the most ridiculous logic I've ever heard. You clearly have a very loyal friend in your corner.

Larry Howard4 said:I’m circling back to the question I posted earlier here:
So, I’ve got this student checking account at Chase, but I haven't been a student for over a year now. Every time I walk into the branch, the staff asks if I want to switch to a standard account, and every single time, I just end up grabbing a handful of flyers like I actually need to sit down and weigh my options. Recently, a friend of mine who works over at Chase told me I should probably just get it sorted, because apparently, Chase has the right to freeze my account just to force my hand on the matter. Is that actually true? Can they really pull a move like that? I'm not even overdrawn or anything, so it feels a bit heavy-handed.

1. They can't freeze your account.
2. You should probably check the actual contract you signed when you first opened the account. It’ll list any requirements tied to that specific student plan, and honestly, all your answers are probably buried in there somewhere.
3. If I were running a bank—which is just a thought, obviously, and what they *could* do is covered in point 2—I’d handle it differently:
- I’d give you a grace period, maybe a few months after your student status expires, to pick a different option (like a standard checking account or a basic debit setup).
- Once that time is up, I’d just move you off the student plan. I wouldn't force you to pick a new one, but I'd start charging the full, non-student price for all those services you're using. I don't think they have any legal ground to force a choice on you, so I wouldn't try it.

Thanks. It felt pretty sketchy to me too, how they could just freeze my account without any actual reason. I think I'll just hire a professional financial consultant to sort this mess out—$6.75 a month is way better than $17 a month

In this country, absolutely anything can happen.
Right now, I’m sitting at the unemployment office collecting my benefits.
And yet, the folks over at the Department of the Treasury decided to freeze my account—which, if you actually bother to read the law, they aren't even supposed to do while I'm registered with the IRS.

Is anyone else dealing with these kinds of bureaucrats or having run-ins with the Department of the Treasury?

Thanks,

As far as I know, they have to freeze the account first—then you submit the request to open a new one specifically for protected benefits so those funds get rerouted to the new account.

Employers are on the hook too
The penalty for dodging wage garnishments is $6.75

Creditors can tap into your bank accounts easier than ever before, and they don't even need your permission. It’s pretty important for regular folks to know when forced collections aren't actually allowed. Plus, employers need to be careful—they could face huge fines or even end up behind bars if they don't follow through on an employee's wage garnishment order

some interesting comments down below

Just a bit of advice: maybe close all those savings accounts at your local Bank of America branches. You're allowed to have accounts in neighboring countries, and since they aren't required to send data over to the IRS, you might at least be able to protect a little bit of your money. Or, you could just move your assets into a law firm's trust account and... well, just enjoy life

A bit of advice: just pay what you owe 🤷 🤔

Melissa Mendoza75 said:Employers are on the hook too
The penalty for dodging wage garnishments is $6.75

Creditors can tap into your bank accounts easier than ever before, and they don't even need your permission. It’s pretty important for regular folks to know when forced collections aren't actually allowed. Plus, employers need to be careful—they could face huge fines or even end up behind bars if they don't follow through on an employee's wage garnishment order

some interesting comments down below

Just a bit of advice: maybe close all those savings accounts at your local Bank of America branches. You're allowed to have accounts in neighboring countries, and since they aren't required to send data over to the IRS, you might at least be able to protect a little bit of your money. Or, you could just move your assets into a law firm's trust account and... well, just enjoy life

Now that is solid advice. 👍

🤦

Larry Howard4 said:I’m circling back to the question I posted earlier here:
So, I’ve got this student checking account at Chase, but I haven't been a student for over a year now. Every time I walk into the branch, the staff asks if I want to switch to a standard account, and every single time, I just end up grabbing a handful of flyers like I actually need to sit down and weigh my options. Recently, a friend of mine who works over at Chase told me I should probably just get it sorted, because apparently, Chase has the right to freeze my account just to force my hand on the matter. Is that actually true? Can they really pull a move like that? I'm not even overdrawn or anything, so it feels a bit heavy-handed.

Think of an account package like an optional add-on service from the bank; since it's an extra feature rather than the core account itself, they can't just lock you out of your money because of it. The only way they'd really have an issue is if there weren't enough funds in the account to cover the specific fees for that service—it sounds like that might be what's happening here.

Lisa Taylor2 said:In this country, absolutely anything can happen.
Right now, I’m sitting at the unemployment office collecting my benefits.
And yet, the folks over at the Department of the Treasury decided to freeze my account—which, if you actually bother to read the law, they aren't even supposed to do while I'm registered with the IRS.

Is anyone else dealing with these kinds of bureaucrats or having run-ins with the Department of the Treasury?

Thanks,

I think you might have misunderstood how this works. Wage garnishment is definitely legal. Even if you're unemployed, you still have an obligation to report any income that is legally exempt from garnishment to the IRS. That way, they can instruct your bank to set up a protected account specifically for your unemployment checks.

Hey there..
I'm currently out of work and my accounts at Bank of America and Chase are both frozen (totaling about $13333). Does anyone know if I can just open an account at a different bank to receive some payments? Also, would Bank of America or Chase be able to grab funds from that new account if I manage to set one up?
Thanks..

electricfox9 said:Hey there..
I'm currently out of work and my accounts at Bank of America and Chase are both frozen (totaling about $13333). Does anyone know if I can just open an account at a different bank to receive some payments? Also, would Bank of America or Chase be able to grab funds from that new account if I manage to set one up?
Thanks..

To make this work, you’ll need to file a claim with the IRS so they can notify your bank to set up a protected account. This specific type of account is designed to hold funds that are legally exempt from garnishment.

bluehawk3 said:To make this work, you’ll need to file a claim with the IRS so they can notify your bank to set up a protected account. This specific type of account is designed to hold funds that are legally exempt from garnishment.

gotcha.. thanks..

Steven Reed said:A bit of advice: just pay what you owe 🤷 🤔

The thing is, everyone just ignores that kind of advice, I guess. And then they have the nerve to act all offended or genuinely shocked when someone actually comes knocking three or four years later demanding the money back? It’s honestly unbelievable... People act like Goldman Sachs is this big, terrifying monster that just freezes your bank accounts out of nowhere. If someone actually had an outstanding debt—say, for a cell phone bill—and just reached out to the law firm handling the case, they probably could have worked out a payment plan. I know plenty of people who were actually quite reasonable about it and even agreed to let them pay as little as $33 a month.

Mark Wilson66 said:Child support and benefits are protected by law, so they should have released those to you regardless of the freeze.

Starting Monday, you'll need to set up a separate account specifically for those protected funds so you can actually access them.

Actually, they didn't "have" to pay out the child benefits because, well, FIFA doesn't actually know what kind of income a citizen is bringing in. They see the total amount hitting the account, sure, but they don't see where it's coming from. That's why the regulations state it's actually the responsibility of the person handling the garnishment to notify FIFA about which specific payments are exempt from being seized.

Linda Jones20 said:So, about two months ago, our business account got frozen because of some ancient, unpaid debt to a VIP provider. The funny thing is, we actually settled the entire balance that exact same day—using funds from a different bank—but the freeze hasn't budged. Our account is still locked tight today.
We've reached out to our local Chase branch multiple times now, but they aren't giving us anything helpful.

Who can we actually talk to about this? And honestly, is this even legal?

I mean, you should probably just reach out to the law firm that's representing Verizon on this case. If you don't have their info handy, just give Verizon's customer service a call; they should be able to give you the phone number for the specific firm handling your file. Honestly, that might be one of the quickest ways to actually get this sorted out.

Lawrence Cruz said:From what I understand, when you have an outstanding balance with Verizon, they go through a collection agency that sends a formal request to the bank. The bank then freezes the account until the debt is cleared. Usually, the fix is simple—you just deposit enough funds to cover what's owed, the bank processes the payment, and the account is unfrozen. That’s pretty much it.
The real headache is that with companies like Verizon, the customer doesn't get a heads-up from the agency. You just hit a brick wall at the bank when you try to withdraw cash, only to have the teller tell you your account is frozen due to a court order. By the time the teller actually figures out who placed the freeze, quite a bit of time has passed.
Anyway, starting January 1st, the Finance Department is taking over, so hopefully, the information flow will be a bit faster.

Collection orders and bank requests—you've got the terminology all wrong.

When Verizon acts as the creditor, they initiate a formal seizure process where a notary issues an enforcement order. Then, an attorney representing Verizon sends that over to the Treasury Department first, rather than directly to the bank. They instruct the Treasury to freeze all of the debtor's accounts and mandate that any banks holding those accounts collect the specified amount—principal, costs, and interest included—based on the valid documentation provided in the enforcement order.
Look, people, this is a legal seizure process, not some playground game.