Closing Checking Accounts

[aa06a47]

My attorney told me I should not close any checking/savings/brokereage accounts prior to filing BK. I think she was reading from one of here cheat sheet cards when she told me this. Now that I have filed, does it make any sence to keep one open that wants to charge me 15/month just for having it open.

[danohio2831]

sorry cant answer

but, if you dont mind me asking, i am thinking of chapter 13 also. how much will that protect cash assets, savings,checking,brokerage accts. the way i see it, is you would have to claim that as a asset. so 10,000 in cash and assets in the house worth 12,000 = a chapter 13 payment plan of at least 22,000. but will go by diposable income.

i have a apptment with a attorney in a week, so i will also ask your question.

dan

[13inOR]

I think the reason you were told this is that it can be difficult to impossible to open a checking account after filing. But, if this is an extra account that you dont need, I dont see what that would hurt, so long as you still have an open one.

[aa06a47]

but, if you dont mind me asking, i am thinking of chapter 13 also. how much will that protect cash assets, savings,checking,brokerage accts. the way i see it, is you would have to claim that as a asset. so 10,000 in cash and assets in the house worth 12,000 = a chapter 13 payment plan of at least 22,000. but will go by diposable income.

i have a apptment with a attorney in a week, so i will also ask your question.

dan

Yes, you must pay into a chapter 13 at least what exempt property you are claiming. The creditors must get at least what they would get in a total liquidation. If you have 10K in cash somewhere, you might think about that new washer, dryer, stove, ect. before you file. You won't have it when you file. Thanks, and let me know what your attorney say's about bank accounts.

[aa06a47]

I think the reason you were told this is that it can be difficult to impossible to open a checking account after filing. But, if this is an extra account that you dont need, I dont see what that would hurt, so long as you still have an open one.

I'm not sure, I do know you have to list any accounts you have closed in the last year. Maybe it is a red flag to the trustee or something?

[FoolAndHisMoney]

I'm not sure, I do know you have to list any accounts you have closed in the last year. Maybe it is a red flag to the trustee or something?

I think you're correct. It's a red flag. If you closed an account 9 months prior to filing it's possible you will be asked to produce a years worth of statements prior to the closing date. Even if there's nothing to hide this will probably slow your case down a bit.

You shouldn't need good credit to open a bank account, post petition unless the bank was a creditor. You also won't qualify for overdraft protection since this requires a credit check.

[SinkingFast]

I'm kinda worried about that one. Closing bank accts within a year thing.

We did. Due to the move to another state, 600 miles away, and not having any branches of that bank where we live now. Obviously we closed our old bank account.

We gave our last 2 bank statements on that acct to the attny when we turned in all our other docs.

Here's hoping the move explains that and closing that acct won't be a red flag for us.

[aa06a47]

Even if it is a red flag, it is easily explainable. I don't think anybody would expect you to keep an account with a bank 600 miles away.

[DOA]

I changed banks AFTER I filed because I had an unsecured personal noye with them that was going to be in the BK of course. I had no problem opening a new account or getting the debit cards.

[FDNYLadder124]

My wife closed her 2 checking accounts a few months before we filed, and nothing was ever said about it. At all. We opened up 2 joint checking accounts a few months after we filed with no problems, debit cards and all. And this was with the bank that our car & truck loans were with.
Another thing I found out last year, My lawyer's office and the trustee's office are in the same building, on the same floor. I wonder if this has anything to do with the ease and general smoothness of our ch 13.
I hear so many terror stories about lawyers, I must say I am lucky, ours is damn near perfect, we've never had an ounce of a problem. Our trustee seems to be extremely pleasant too. Not bad looking either...........
Tonka Truck

[13inOR]

we were lucky too, FDNY. I cant say enough about how fantastic our lawyer has been.

[aa06a47]

FD, my lawyer's office is next door to the trustee as well.....when I found this out, I decided instead of just a consult, I was going with her. Plus, she spent alot of time explaining and going over everything with me before I found out about the closeness of her and the trustee. Of course, she did call him a grouchy old bastard when discussing something with her one time. I hope my plan goes as well as yours did.

[Jman30]

I am very fortunate as well. My lawyer has been really great. Sometimes he is grouchy and seems overworked, but he has always been great about answering questions and filing things on time. He has been doing BK work since like 1980 or something, so he knows his stuff.

Mine also knows the Trustees in the area. Due to my home address, we could choose either to file the BK in Cincinnati OH or Dayton OH. He told us to go with Dayton, since that Trustee asked "less questions" and wasn't as tough deal with as the guy in Cincinnati.

[FDNYLadder124]

My wife just reminded me of this, How could I have forgotten,
Last summer, a few weeks after our 341, I called the lawyer's office to see if they heard of anything good or bad out of the 341, if they thought there'd be any objections to confirmation, the para says "Mr.------ (the lawyer) is in Las Veags on a convention this week but everything looks a-okay".
I get the nerve to call the trustee, the girl says "Ms.-----(the trustee) is in Las Vegas for the week for business"
Hmmmmmmmm.
TonkaTruck