What To Do With Bankrupted Bank Account?

[HeartBroke]

So I have a checking account with the bank I bankrupted out on a $1,000 loan with. My paycheck is electronically deposited there.

Will they sieze the cash in the account, or demand that I bank elsewhere, or should I close the account, or what? Or should I just go on as though nothing happened?

[Kam]

I highly doubt your bank is going to let you carry on as normal. If you do not reaffirm the loan the bank will take steps to secure their money.

If I was in your position:

1) Immediately cancel auto-deposit of your pay checks. If you are unable to prevent the next pay check from being deposited you can probably kiss that one good bye if you do not elect to reaffirm the loan.
2) Immediately open a new checking account with another local bank.
3) Immediately complete the paperwork to have your payroll deposited into your new account. This may take time, up to perhaps 2 weeks to be processed.

When did you file BK? If you just filed, chances are you can still open a new checking account elsewhere before your bk is entered into the banking system. Of course, keep in mind that if you have auto-pays deducted from your existing checking account, they will have to be cancelled as well and transferred to your new account.

I hope this helps. I am sure someone with more experience in this matter will offer his/her opinion. We had to open up a new checking account/switch deposits, etc because of payday loans and we were fairly fortunate that the auto-deposit switch over was done on the spot because we stayed with the same bank.

-- Kam

[HeartBroke]

Thanks much kam ... whew, now I'm sweating a little. I filed at the deadline, Oct 14 ... I should jump on this asap...

[bkfiler]

"If you just filed, chances are you can still open a new checking account elsewhere before your bk is entered into the banking system."

i dont think there is a banking system that holds bk info. however, if you accounts (checking, savings - and maybe the overdraft stuff - are negative and you owe the bank for bad checks then that will be reported and cause problems opening up another account elsewhere)

you have to take your money out immediately imo.

[Kam]

Thanks, BKFiler that's what I meant, although, I was told, using Wells Fargo as an example, that even though you did not include WF in your BK, if they find out you filed BK they will close/freeze your checking accounts. How is this possible unless the banks share information somehow?

[bkfiler]

not sure. guess they have access to the credit reports. this is a new thing that wells fargo is doing.

[MRDEBTSTER]

I was told by my attorney that once you file, the automatic stay goes into effect and the bank cannot touch your checking and/or savings, even if you owe them money and listed them as a creditor.

[HeartBroke]

See; this was my understanding, too. I'd hate to close the account and not be able to open another ... so what I'll do, I think, is take the $300 that's in the account out and open another, switch the deposits, and leave the first open as well in case something happens with the second ...

Thanks all again!

[StaciMM]

If its a credit union, they are known to cross collateralize-meaning funds in one account (checking) secure another (credit) and they can seize funds. If your accounts are not related in this way, they can't do anything.

[bkfiler]

i think many topics are going on here. ive posted what i know.

however, i want to reiterate, take all your money out of your checking and savings accounts that you can without closing them (and leaving enough for all checks to clear, etc) and put it in an envelope for save keeping.

remeber that ANY account you open or close within 1 year of filing bk has to be reported. keep that in mind. i'd still go open another bank account. couldnt hurt i guess.

oh and if you dont know what to do with the envelope i was talking about then i'll give you my address to send it to me. staci and i will use it for drinks

[StaciMM]

Have I given myself a bad rep, LOL?

[AAAArt]

oh and if you dont know what to do with the envelope i was talking about then i'll give you my address to send it to me. staci and i will use it for drinks

Personal to bkfiler...If she does that, do I get my beer?

HeartBroke,
Staci is 100% correct legally.
OTOH, there are enough things that can go wrong or complicate issues, that I would definitely follow Kam's and bkfiler's advice.
Welcome and Good luck, Art

[bkfiler]

art, is that a collection attemp?

staci, question: how much can i get out of art for violation of the stay?

and do i need to report the envelope of cash i receive to trustee out of fear of dismissal?

lastly, can ex-bk filers hang out or is there some probationary period like ex-cons?

damn things have gotten so complicated now

[StaciMM]

Bkfiler-

If you at some point offered Art a beer (and I'm too lazy to go back and look though from the post I'd assume you did) was it after you filed? If so-its not dischargeable, LOL! You better pay up & buy that drink!

[AAAArt]

I move that we make Staci a moderator and give her binding arbitration powers!!! Thirsty Art