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Banking issues during bankruptcy

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    Banking issues during bankruptcy

    Hello,
    I need some advice to help me with bank account issues. We filed in 2020 originally. Long , long story short our attorney died and our plan was never confirmed. It was dismissed. He drew most of the funds that were added into the bankruptcy in the 11 months we paid without it being confirmed. We were out over $5,000 but no one cared.

    Fast forward to December 2021. We were able to find a new attorney within a week after bankruptcy was dismissed. We stopped making payments b/c we could not find an attorney mid case and assumed it would be dismissed but had set them aside just in case. So, we had money to pay the new attorney a retainer. This was a good thing b/c they had already scheduled a sale of our home. The only reason we filed was to stop the sale of our home the first time and the same reason now the second time.

    Our attorney filed the paperwork hours before the house was to be sold, but I had to inform him that this was even happening. This was approx. 2 weeks after dismissal. So now we are in a new chapter 13 still paying 100%. We have the same trustee, the mortgage company has the same attorney even though our loan was sold. They are still doing the same dirty tricks the first mortgage company was doing. Like adding charges onto our mortgage that we do not understand, nor will they tell us what they are for not applying the funds correctly and charging us extra every month for who knows what? It has been a nightmare. The new mortgage company is almost as bad as old one.


    In May of this year our bank (the bank that bought our mortgage in February 2022 and also has our heloc) refused an automatic deposit. This deposit has gone into the same account for over 20 years. The bank says that it was never received. The issuer said the bank refused the deposit. So we are now in the process of switching everything to a credit union, who btw accepted the reissued deposit, no problem.


    The bank that refused the deposit has been so difficult since we filed the first time. They have refused 2 other deposits (one of them a tax refund), sent letters to my attorney and trustee once for a $2.09 mistake they made. They have refused payments, have deposited funds that took 2 phone calls over 3 days for it to appear in my account even as pending, delayed Zelle payments, delayed notifications, would not allow me to access to accounts, and several other issues. This ONLY started after we filed the first time. We had banked with them for 20+ years and thought they were a good bank. That all changed after we filed bankruptcy.


    Because they refused the deposit, our payment was late to the trustee. We informed our attorney and made the payment the same day that we received the deposit. I sent our attorney screen shots showing that the payment was made. The trustee, of course, tried to dismiss. My problem is that I asked our attorney to explain what had happened to the trustee and the court. He did not and now being difficult and saying we were difficult and delayed signing some paperwork. I had sent 3 different emails asking about this before he started complaining and got no response. We got the papers signed in time and avoided a dismissal on that issue.


    Now tfs has suspended our account b/c when I tried to make the missed May payment it did not show up on my account, not even pending. I assumed I made a mistake, so I called them about it and they said to do it again, which I did. Both requests were sent to the bank a few days apart but we did not have that amount in our account so they refused one of them. The past payment (5 days overdue) was paid. TFS suspended my account b/c the bank refused the second (duplicate) payment. So now I have to deal with this before this months payment can be made.


    My attorney said he was not going to “hash out my banking issues.” He will not explain the situation to the trustee, so now it looks like we are being difficult or not doing what we are suppose to do. I am doing my best but there have been so many issues!


    I am honestly not trying to be difficult and most of these banking issues are not and have not been my fault. I have filed formal complaints with the bank but have not received any responses. I have filed many of them, every time an incident occurs. I have filed a complaint with an online complaint company about the banking issues I have had. I am waiting to hear about that. We are switching banks but that is not an easy process after 20+ years. This bank now holds both of our mortgages and I am worried that they will make my life even more difficult. I do plan on keeping this one account with them and using it for the sole purpose of making our payment each month to the trustee.


    Do you think it would be appropriate for me to send a letter detailing these few issues to my attorney and then just forward a copy of it to the trustee’s office? I want the trustee to understand that this bank is actively doing things to make this whole process much much more difficult for us. I want my attorney to realize that turning the tables to make me look bad will not be tolerated. (My ex husband was an attorney and I saw many of tricks he used to do this when he was spiraling down. He no longer practices law.)


    I realize that I have made mistakes or else I wouldn’t be in this mess. Because of things like this and much more and the seemingly ongoing issues with big banks, I feel defeated, swindled, and have lost my faith not only in the banking system, but the justice system, the court system, and my own belief that trying to do things correctly and honestly counts for something. I have learned it does not. It seems that the harder you try and/or the more you dismiss their mistakes or just agree with whatever, the more they take advantage of you. I am tired of always being blamed for things that are out of my control. I want to make it clear that I am not going to accept responsibility for their mistakes.

    My mistakes are paraded through the courts and they do not have to accept any responsibility for theirs. I could not even get anyone to listen when they called me 8 times about their $2.09 mistake, sent threatening letters to me and told everyone I was behind on payments. This occurred when we were in the first bankruptcy. But no one cared. My attorney said it was no big deal and to just said to pay the $2.09. However, they wouldn’t even let me pay that amount nor the next months payment until after I wrote a letter to the head of the department. They took no responsibility but did finally allow me to make the payment. Again, just makes me look bad and makes my credit rating go down. I feel they need to be held accountable but I do not have the resources or funds to fight them with in court.


    Has anyone has similar issues? How did you resolve them? What can I do in the future to prevent these types of things? I am doing my best to make it through this bankruptcy, but every aspect of it has been a nightmare. It has cost us more and more money and has taken my stress levels to new heights.


    Only 55 months to go😭😭😱😭, if the stress doesn’t get me first.

    #2
    I've had problems with my longtime bank of nearly 30 years as well and used the bankruptcy to clean up my Chexsystems so I could leave them permanently ASAP. After I left my bank, I found that banks are disposable entities and I need to fire them a lot sooner. Loyalty with banks, credit unions, and auto insurance companies without accident forgiveness is not rewarded so feel free to fire them at will. I also closed the bank account where my HELOC was located as well. Then after 12 months of on-time CH13 payments (defined as less than 30 days late), I refinanced out of the 1st mortgage and HELOC with court permission to be rid of the bad mortgage lenders and their junk fees. The new mortgage is very nice because it has none of the bankruptcy baggage and it's treated like a normal mortgage account in good standing that everyone else has. One of my credit unions had my auto loan and I overpaid the final payment by $5 thinking they would refund me. They didn't and I gave up on chasing the refund when I found out that the hold time was going to be 45 minutes. I think you need to let it go and move on. I left that credit union and moved on.

    I think most of your problems stem from staying with your bank too long as the problems began to cascade. Don't count on the credit union being any better and be ready to fire them too. I hired my attorney to do my chapter 13, not mediate my deposit banking disputes.

    As far as TFS, I made all of the payments at Walmart with a debit card until confirmation because they show up immediately in the system at the trustee once I completed the TFS payment at Walmart. Ask to see if you can make TFS payments at Walmart even though they locked you out of ACH payments. I tried avoiding TFS by sending a cashier's check once and it took too long due to the slow US Postal service so I gave up on doing that.

    Hopefully the next 55 months will be a lot better for you. Good luck.

    Comment


      #3
      Targetonback , you have my full and abiding sympathy! What you are dealing with concerning your long-time bank can only be likened to a perfect nightmare storm and I hope you are able to rid yourself of them completely once your BK13 ends if not before.
      My only question is: is this a nationally recognized bank like Chase, Wells Fargo, Capitol One, etc. or is it a small family -owned bank situated only in the town or state where you live? Because were you dealing with a large interstate bank, I would think there would be more avenues to complain and get this mess cleaned up and corrected.
      We have had a large national bank for around 18 years -and knock-on wood- we have never had any major issues with them, even during our whole BK13 which just ended this year. What is all the more remarkable, however, is this particular bank was one of our major CC creditors who filed two claims in our bankruptcy and were only paid a less than 100% repayment as we were not able to fully payback our debts. So far, they have never been vindictive or threatening in any way and I suspect they are not allowed to, given they are governed by stockholders and FDIC rules.
      I am not discounting anything flashoflight posted, but I haven't personally had such an experience with my current bank.
      ​​​​​​​Here's wishing the next 55 months yields better results and runs smoother than before this maelstrom began! Best of luck !

      Comment

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