Can Child Support Payments Be Frozen in Bank Accounts?

Bank accounts are frozen as a result of some debt collection practices, which can be either private or governmental. There are different laws for each, and laws also change depending on the state in which you live. However, generally speaking, child support payments -- especially those paid using direct deposit -- are typically exempt from such seizure.

Frozen Bank Accounts

A bank account is "frozen" when the money in it cannot be withdrawn. Usually, money can still be deposited, but isn't available for use. In order to freeze a bank account, a creditor must have a judgment against the account's holder, or one of the account's holders in the case of joint accounts. A frozen account may show a negative balance because the creditor puts a hold on the account for an amount greater than the judgment. This is reflected on the account as a negative balance, even though money is not owed to the account itself.

Exempt Benefits

Even if you cannot vacate the judgment -- which unfreezes all funds within the account -- child support payments are usually exempt from such seizure, as are Social Security, Supplemental Security Income, veterans benefits and unemployment benefits. However, you may have to notify the creditor's attorney that the funds are exempt in order to gain access to them.

Establishing Exempt Funds

To unfreeze your funds, or a portion of them, you need to prove that they came from child support payments. The bank can give you the proper contact information and from there you may have to send proof of exempt funds. You can do this by sending the attorney copies of your bank statements for the last three months. You are perfectly allowed to redact your statements, blacking out purchases to protect your privacy, but the attorney needs to see the deposits in order to confirm that the funds are exempt.

Leverage of Funds

It's important to establish exempt funds such as child support payments as quickly as possible because, with a judgment against you, a creditor may have the right to levy the funds in your account. They may be able to take the funds out, and things only become more complicated once that happens. While some states -- New York, for instance -- have a limit on how much must remain in your account and free for your use, other states do not.