It can be a nasty surprise to find out that your checking account is frozen.

When a bank freezes your account, you still have limited access to it. You are able to check your transactions and receive certain deposits.

However, you are not able to withdraw or transfer your money until the issue that caused the account to be frozen is cleared. Make sure to contact your bank immediately if your account is frozen. 

Bank accounts are frozen for a number of different reasons, and each reason requires specific actions to unfreeze the account.  We all know the bank can freeze your account, but do you know that there are certain times when the government or court may ask the bank to freeze your account? What could lead to the government freezing your account?

Below are the reasons why they can do that, according to a website.

1. Suspicious or illegal activity

If there is suspicion that you are using your account illegally, the government or any anti-corruption agency can instruct the bank to freeze your account. Suspicious activity includes: Suspicious payments from an outside country or depositing large amounts of money suspiciously, which results in your account being flagged. When your account is frozen by the government, you usually have to get a lawyer.

2. Unpaid debts through creditors

If your creditors go to court against you, they can gain approval from the courts to freeze your account. If you are also owing the government, the same process can be gone through. They can gain access to a current or savings account in order to collect payment on defaulted loans without filing a lawsuit or obtaining a judgment first.

3. Unpaid debts to the government

People who owe taxes to the government can also find their account frozen. For unpaid taxes, the government can issue a tax levy that is not to be lifted until the debt is paid in full.