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Clandestine1

Clandestine1

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Submitted 542 days ago...

Amuck226

Amuck226

New User (2)

Had checking account frozen if I open another one will that get frozen also if this time I use a federal tax ID number instead of ss number

I had a charge account that was in dispute and they froze my checking account I need one as I am self employed. I opened a new one using a federal tax id number instead of my social security number will this prevent them from freezing my account again. I also took on a partner.

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Answer 1 / 4 - Submitted 93 days ago...

466

466

New User (6)

They might because in order to open a federal tax ID you had to give your ss# so it might just be a matter of time before they can link the account to your ss#

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Answer 2 / 4 - Submitted 93 days ago...

SRDEsq

SRDEsq

Brain (3,690)

Well, no credit company ( lender ) "froze" your account, the court "seized" you account becaus ethe lender had a court order to do so, you had a certain number of days ( dependent on your state law) to dispute the seizure and cliam any exempt funds that was in the checking account ( such as someone else's money, ss, child support, etc) since you obviously didn't, the bank will take the money our of your account and send it to the creditor, and this will happen all over again, with a new account, if the amount seized in the first account was not enough to cover the judgment. Then you will have another certain amount of days to prove that the money in their belongs to someone else, etc etc)
If you have "partner" then you will have to a have an LLC to protect in funds in that account, that they can track baclk to you. Obtain legal advice

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Answer 3 / 4 - Submitted 93 days ago...

Clandestine1

Clandestine1

Authority (444)

It depends on "who" is freezing your account. If this is a creditor (someone you owe money to), then they usually only attempt to freeze (or levy) your bank account once.

Now, if you applied and received a Federal Tax ID, it is true that you usedyour social to obtain it, however, creditors have no way of verifying what Federal Tax ID's where obtained by certain social security numbers.

It is good that you obtained a partner, however, if you have a personal debt and do not want your business or business account to be seized, the best thing to do is to incorporate.

You can file to become a corporation or LLC (limited liability corporation). This will make it so that your business can in no way be affected by your personal debts or issues. You can file to become a corporation online using legalzoom.com or by visiting an attorney. Online is much cheaper.

Now, after you incorporate, open a bank account in the business name and your done! Your business money/income will now be safe from your personal stuff. Also, when you incorporate, the amount of tax you pay as a corporation is a lot less than owning it as an individual (sole proprietor)...just a little bonus information for ya! :) Good luck!

 
Answer 4 / 4 - Submitted 93 days ago...

SRDEsq

SRDEsq

Brain (3,690)

What are you talking about "clandestine", a person cannot walk in off the street , creditor or not , and "freeze" ( the actual term is 'sieze" ) someone's checking account without a court order.
And evidently, you have no idea how stubborn some creditors can be.

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This Question was awarded 93 days ago therefore you can no longer post an Answer. However you may post a comment below.

 
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Submitted 93 days ago...

secretagent

secretagent

Professor (1,805)

However, if you use profits to pay yourself (and other non-business expenses), those can be counted as income and taxed under your social security number. This can be traced back to the corporate account with your social and be considered an asset, and as you know, assets can be seized by anyone with a court order to do so.

So yes, technically your supposition is correct, but it can be just a matter of time in which it occurs again. I would consider seeking bankruptcy protection which will legally stop such collection actions.

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