questions on checking acct- freezing

[seafresh]

I read on the web that banks can freeze your account if you have their credit cards??
is this true???
i have 2 cards with bk of america. and one is paid off.

thx

sea

[ARO96]

My hubby and I had our checking account at his company credit union, we also had a loan through the credit union. Our attorney did advise us to switch banks before we filed. Since his paycheck is direct deposited and we were including the credit union loan, he said there was a chance they would try to take that money.

So we switched banks, we even closed our kids savings account at the company credit union just to be safe.

Not sure about credit cards with a bank.

Best advice, make a list of questions to ask your attorney. Don't worry if the questions sound silly.

[lrprn]

I read on the web that banks can freeze your account if you have their credit cards??
is this true??? i have 2 cards with bk of america. and one is paid off.

This is a concern ONLY if you have a checking or savings account at a bank or credit union AND you also have a credit card or unsecured loan issued by the same bank or credit union AND the contract you signed allows for cross-collaterization.

Cross-collateralization allows the bank or credit union to take money from one account at the bank/credit union to pay for shortfalls in another held at the same bank/credit union. If you have this situation, then you need to open a new checking/savings account at another bank and move your money and all direct deposits there before filing. If you don't have that situation, then you don't have to worry about this happening.

[seafresh]

This is a concern ONLY if you have a checking or savings account at a bank or credit union AND you also have a credit card or unsecured loan issued by the same bank or credit union AND the contract you signed allows for cross-collaterization.

Cross-collateralization allows the bank or credit union to take money from one account at the bank/credit union to pay for shortfalls in another held at the same bank/credit union. If you have this situation, then you need to open a new checking/savings account at another bank and move your money and all direct deposits there before filing. If you don't have that situation, then you don't have to worry about this happening.

well i am out of luck with this one.
what are my options here???

sea

[seafresh]

another question,
my new wife has her acct with bk of america also, but 1 of my personal cc is also bk of america.Now, can they access her acct, even if it was her own account before the marriage last yr?

i had to file ch7 asap because of my situation with my business.

thx

seafresh

[lrprn]

well i am out of luck with this one.
what are my options here???

Since you already filed , do you have copies of the original agreements to see if there is a cross-collaterization clause in the contract?

If you don't have the original contracts and don't know if there's a cross-collateralization contract or not, to protect your money, stop all automatic deposits and automatic withdrawals coming out of the possibly cross-collateralized account #1 immediately. Open a new account #2 at a completely different bank asap, get a debit card for that account, and transfer all auto-deposits over to the new account.

Until you can get this into place, you'll have to go to #1 bank early on the day your deposit hits and remove all the cash from account #1. Deposit that money into new account #2. Until account #2 is in place and running smoothly, you can use money orders or other stop-gap measures to pay your bills.

Of course, discuss this with your lawyer before doing anything.