Your bank account is your source of financial security, but it’s not always so secure. A frozen bank account is something many people have to deal with, and if it happens to you, you’ll need to learn ow to make your bank unfreeze your frozen bank account and take action fast.

A frozen bank account can usually happen in two ways — one, a third-party creditor can freeze your bank account with a court order, and two, the Canada Revenue Agency (CRA) can freeze it even without a court order if they know where you bank.

When your bank is advised of the action, they are legally obligated to freeze your account. In both cases, you likely won’t be notified that your account is about to be frozen.

You’ll only find out when you attempt to use your bank card or account. And in the meantime, any automatic payments, any cheques, or any other payments you attempt to make will fail, which can do a great deal of harm to your credit.

If you have a frozen bank account, what can you do?

When your bank account is frozen, the funds are held for 30 days and then sent to your creditors, so fast action is key.

The only ways you can get your account unfrozen are to:

1. Make an arrangement with the creditor (usually by paying the debt in full) and they remove the freeze. If you have the means to pay off the debt, this can be the best option. But if you don’t have the funds, you likely won’t be able to make an arrangement without professional assistance.
2. Get a court order to remove it. This can be expensive, and it isn’t guaranteed the judge will rule in your favour.
3. Look at filing a consumer proposal or filing for bankruptcy. Both options immediately stop a frozen bank account and will see any funds frozen returned as soon as possible, however, they can also significantly harm your credit. But if you can’t afford to pay off the debt otherwise, it may be the best option available.

One thing important to note: if you’re considering a consumer proposal or bankruptcy, don’t go directly to a trustee for these.

Speak with a financial consultant first. Trustees represent your creditors and get paid depending on the amount of the proposal or bankruptcy. A bigger amount equals more money for them.

It can’t be reiterated enough — if you have a frozen bank account, you must act quickly. Once your account is frozen, you only have a short period (30 days) to stop the bank from remitting the funds in your account to your creditor.

No matter the situation, a frozen bank account can wreak havoc on your credit and finances.

If you need to unfreeze your frozen bank account, don’t wait.

Contact DebtCare today to find out about all of your options. 1-888-890-0888.