The best way to unfreeze your bank account is to erase the judgment against you. This is called “vacating” the judgment. Once the judgment is vacated, your account will be released automatically. A creditor or debt collector has no right to freeze your account without a judgment.
One may also ask, can banks hold your PPP loan?
1 attorney answer
Yes, all regulated banks are required to report any activity involving any customer’s accounts. Apparently your bank is suspicious of your PPP loan because the funds are supposed to be used only for business payroll and other business…
Simply so, can I transfer my PPP funds to another bank?
Deposit the PPP funds into a new bank account. If you need to temporarily deposit it into your main business checking account, that is okay. You can transfer the money over as soon as the new account is opened. Having a separate account will make it much easier to keep track of how the PPP money is spent.
Can money still be paid into a frozen bank account?
No – the bank will still accept the money if the account has been frozen and there is an overdrawn balance. Regards, Melanie Giles, Insolvency Practitioner for over 20 years. OK Melanie, thanks – that’s what I expected.
The SBA has warned that depositing federal loan funds into a personal bank account is considered to be a strong indicator for fraud, and it has urged banks to scrutinize PPP loan recipients who deposited their loans into personal accounts.
You are welcome to return the funds in full, as long as it’s before May 18. However, you will likely not be allowed to apply for another PPP loan—each business is only allowed to receive one PPP loan. You can speak to your lender to start the process of returning your loan.
Fortunately, since the intent of this bill is to save American jobs and businesses, there’s a huge motivation built into the provisions of the loan program for businesses: If you maintain levels of employment and compensation (SEE BELOW FOR IMPORTANT EXCEPTIONS FOR 2021) and spend the funds on approved expenses, your …
If your dormant account has become inactive then you can activate it by depositing or withdrawing money. For this, you will have to visit the home branch of your bank. Here, you have to put a request to reactivate the account in writing. Do carry the necessary documents for KYC with you.
Contact Chase Bank to find out why your account was frozen. Phone, email, help desk, and chat contact options are available. If Chase Bank tells you that your account was frozen because of suspicious activity, ask which transactions were considered suspicious.
If your bank freezes your account for a suspicious act, the hold or restriction will last for about 10 days for simpler situations. However, if your case is complicated, your bank account may not be unfrozen until after 30 days or more.
Once approved, the SBA requires lenders to disburse funds within 10 calendar days. Your loan is considered approved once the SBA assigns you a loan number. In general, the PPP loan funding timeline is around two weeks, from when you submit your application to the time the lender disburses funds.
Once payment details are updated and certified, the payment will be re-processed using the updated deposit account details. After valid payment details are collected and certified, payments will generally take 5-7 business days to be processed and reach their destination.
As noted above, a frozen account means you won’t have access to any of your money until the situation is resolved. This means you can’t take out any money and scheduled payments won’t go through. And because these payments will bounce, you’ll probably incur a non-sufficient funds (NSF) charge.
As stated, the main reason you may find your company bank account frozen will be a winding up petition has been advertised in The Gazette. However, there are other reasons your bank account is frozen: You have breached your credit agreement with your bank. A freezing order has been obtained by one of your creditors.