Setoffs? What are they?

[bandrat]

While filling out the forms the lawyer gave me, one of the questions asks about any 'setoffs' made by a creditor in the last 90 days. Is this the same thing as a chargeoff? If not, what is this setoff thing?

Sorry about yet another question...

Thanks.

[StaciMM]

I believe it is when you have an asset account & a credit account w/ a creditor and they use the asset to pay a delinquent credit account.

Such as... Your credit union takes the money in your checking account and applies it to a loan.

[bandrat]

My wife and I have a checking and savings with Bank of America. We also have one CC that would be included in the ch7. Does this mean they can take whatever they want out of my checking to pay the CC balance?

[Minera]

only if they have a judgement, we had a set off about two years ago, where the cc company got a judgment and since I didn't have a job they got a sign off from the judge to access our checking account for the money. We didn't find out about it till after it happened, but we knew that it could happen because we received paperwork that the judgement had been entered against us, and they listed the means in which they could get there money and they included wage garnishment, bank accounts, and weekly payments being ordered. So believe me you will know about it unless the judgement doesn't get to you in the mail.