Question regarding bank account freeze

[Confused14]

Once you file (or at any time during your waiting to be discharged) do your bank accounts; checking, savings, direct deposit get frozen??? I just read something that says once your petition is made public, your bank accounts are frozen. I also read something about direct deposit being stopped. Please tell me this is all incorrect! If there is anything that happens to your bank accounts and/or direct deposit, please tell me what they are.

Also, will my employer find out I filed Bankruptcy??

Thank you.

[AngelinaCat]

Hi Confused14: In our case, our accounts did get frozen. We were/are members of a CU that my husband has been a member of for 40 years.

We wanted to reaffirm a car and an overdraft loan. We signed papers that the attorney provided, and her assistant talked to someone at the CU. We thought everything was cool.

A few days later we found our account had been frozen, and we got a nasty-gram in the mail telling us that because we filed BK, we had broken trust with the other CU members, and that our account was being closed at once, and any automatic actions needed to be terminated immediately.

'Hub called immediately, and talked to a very nice person in the BK department. Turns out that we had to fill THEIR paperwork out and have it approved by their judge in their district in Ohio. After that all was well. But, damn, our account was frozen for 10 days.

That was really scarey. But that was our experience. Someone else will share theirs.

Good luck to you.

[pmed8]

Bah!


If you owe your bank $$ on a CC or a loan or w/e then you best move your cash to a completely different bank. It's better to be safe than sorry.

I really don't think direct deposit matters unless you change to a different bank. Different routing # and acct # means you would have to redo your direct deposit paperwork with work or whatever.

Nothing is frozen unless you have other debts with the bank. At least not to my knowledge. Mine sure weren't.

I did switch banks because I had a CC with the same bank.

Actually come to think of it, I need to close those other checking accounts.........


Pmed8

[Confused14]

Thanks! My accounts are just regular checking, savings, not part of a credit union, so maybe I'm safe. You will definitely hear from me if I'm not! That just wouldn't be cool My accounts aren't with any of my cc's or other debts, so hopefully I'll be ok, we'll sure see! Thanks for the info.

[pmed8]

On a side note. Be cautious about what your bank owns. I remember reading where citigroup owns a bunch of smaller banks and such. You never know what the evil CC companies have their fingers in. I'm sure the same is true for BOA.

Pmed8

[Cali]

If you are including your bank or credit union, they can/will take your online privies away.

[pa308]

My bank account was not frozen/affected.

I have a HELOC at same institution which i am current on and will stay current on. I do automatic transfers from my checking to my HELOC.

The only thing that did happen is my line of credit for HELOC is no more. I totally understand that.

[AngelinaCat]

Still, if you are able to get a little bit of money out of the account now and then, I would do so to have something to tide you over if--and only if--your account does get frozen. If it doesn't, then you have the start of a little emergency fund that you need to forget exists, except for MAJOR problems.

[AngelinaCatHub]

If you are including your bank or credit union, they can/will take your online privies away.

[Cali]

Hi ACH!!

The bank we BKed a huge amount, didn't take our online privies or our insurance away.
My CU was fine too, but I didn't include it in BK.

[TEW]

I include both of my banks in the BK and they one I have a HELOC and the other I have a personal loan both are included. I don’t believe an bank can none judicially take your money from one account to another. I also believe it would be a violation of the stay if they did.