What Are Some Reasons to Freeze a Bank Account?

By Staff WriterLast Updated Mar 26, 2020 9:51:19 AM ET

Reasons that a bank account may be frozen include compliance with a court order, the account holder being declared bankrupt and insufficient funds in the account. A bank account may also be frozen if the bank is notified about a dispute concerning the ownership of funds or account operation, or to protect the account holder, the bank or a third party who has a reasonable interest in the account.