How long can bank account remain frozen

[ihatearizona]

What is the name of your state? Arizona

Our checking account was frozen due to a set off for a car we turned back into the bank. We have NOT yet filed for bankruptcy but plan to file the paperwork within the next week or so. I know they can legally take money out of our account and freeze it for the amount that they took out due to a court ruling I was informed of. I've read the ruling and there is a stipulation in there that the creditor can only place the freeze on your account for a certain amount of time, BUT I was unable to find anything relating to the amount of time that hold can be on the account. According to our bank the hold is for 13 months!

I need info on the legal amount of time they can freeze your account.

Most states only allow a bank account to be frozen for 30 days.

[JETX]

Why do you think this was a 'freeze'???
Based on your post, the bank did an 'offset' (deducted from your account to make payments on money owed on other loans). This is NOT a freeze, but is simply a withdrawal from your account.

Also, you make mention of a 'court ruling'. Was this done after the bank got a judgment against you??

In either case, what was 'your money' is now 'their money'.... and your loan should reflect the payment(s) received.

[ihatearizona]

This is indeed a "FREEZE". They took all of the funds out of our checking account and used them towards the debt we owed them (offset).

In addition to doing that they ALSO froze our account for the same amount they took out.

I was told the hold was for 13 months. We do NOT have a judgment against us. The court ruling I was referring to deals with banks freezing your account when you file for bankruptcy.

I really need an answer to this one. I'm debating on whether or not to pay the NSF fees generated by their draining and then freezing our account or to include them in our bankruptcy paperwork. I understand that if I don't repay the NSF fees that even though it will be discharged in the bankruptcy that I won't be able to get another checking account until those NSF fees are paid. I need a way to cash my paychecks other than a check cashing service that charges far too much.

[JETX]

Someone is clearly confused here. If they have already deducted the 'offset' from the account, there is no reason to freeze the same amount of funds (that would be double-dipping).
If this is in fact true what you claim, I would suggest going to the bank and talking with an officer.... and asking him/her to show you where your loan agreement allows them to double-dip (we already know it allows offset).... or where the banking regulations allows it.
If they can't or won't, then I would raise holy hell and move my money elsewhere (at least!!).

[ihatearizona]

We owe them more than the funds that were taken from our account but I don't understand why they would freeze the account for the same amount as what they took from us for the offset. Why not just freeze it for the entire remaining balance? I did speak to a customer service rep about this issue and she said it HAD to be a mistake by the person that put the freeze on the account but that she couldn't remove it. She said that I would have to call the collection agent that put the freeze on the account and have him reverse it. I wasn't about to do that until we filed our bankruptcy paperwork with the courts. Even then, it's not going to make any difference.