Childrens frozen savings account

[GawVa]

Well this was a shock

Took my girls to the bank to get money out of account that they own
my name is only on it for purposes of them being a minor.

It is frozen ,
My check and saving account is with same bank and that have not done anything to mine.
Is this not against the law ??? or at least against the Automatic Stay ??

Lawyer is looking into how they can do this.

Any advise or is this common ?

[HHM]

That is a new wrinkle.

First question, is this a bank or a credit Union?

Did the teller give any explanation?

I don't know that it would be a violation of the Automatic Stay, per se...but it is an odd move to make. I'll have to think about this one a little.

[GawVa]

credit union

Explanation was because I files BK.
Our attorney at time of filing said he has previous history of them freezing
accounts but after a phone call it is resolved.

He has not gotten back to me about this one yet

[HHM]

Since it is a Credit Union, that partially explains it. You must also have some type of loan (car loan perhaps) or credit card with them???

Credit Unions, as part of their account agreements, CU often do what is called "cross collateralization" Which means, that if you have a loan with them, and you default, any assets you have on deposit with the CU, are used like collateral on a loan to cure the default.

However, because you filed BK, this probably is a violation of the automatic stay, and will probably get cleared up with out too much hassle. (crossing fingers).

[Spartan]

The account is the property of the minors, not the property of the debtor.

Your lawyer should have no problem getting the problem resolved.

[HHM]

The account is the property of the minors, not the property of the debtor.

Your lawyer should have no problem getting the problem resolved.

We really don't know that for sure? Remember, minors cannot enter into a contract...so unless this is officially a trust of some kind (which I doubt), the legal status of ownership of the funds is not that clear cut. Think of it this way, who really owns the bed in your kids bedroom? Regardless, this still should not be an issue.

[Spartan]

Details ..details... lol

You do have a point. When and how the money went into the accounts, can sway the argument to either direction.

The odd thing is, her personal accounts are fine, but the kids' are frozen. The word that comes to mind is, snaffu.

[GawVa]

Money has been in accounts for couple years , less than 1,000

Lawyer is still working on it.

Needless to say no matter the outcome they have lost my business and
the business of my children.

I told my wife when and if the lawyer gets them unfrozen I will go back to that same branch and same teller and let my girls remove every dime of their
money, and hope the branch manager is present so she can witness it.

[lrprn]

Needless to say no matter the outcome they have lost my business and the business of my children.

I hope you have already moved all of your accounts from this credit union as well, GawVa. The freezing of your children's account may have been an error when they meant to freeze your account instead. Don't take any chances - this credit union has already proven themselves as not friendly to your situation. And regardless, what a stupid mistake! Hope everthing settles out soon.

[SinkingFast]

That is truely regrettable, GawVa!

BK is bad enough, but to have your kids get caught in the crossfire! I can well imagine your indignation and your irritation with the whole affair.

I agree with Lrprn, tho. This CU has already shown their colors. They coulda been meaning to freeze your accts and got your kids' by mistake. I'd be inclined to move to another bank myself.

[AMISLANDER]

Get The $$$$$ Outta There!!!

[GawVa]

Already stopped my next direct deposit and already have a second checking account elsewhere.

[lrprn]

Already stopped my next direct deposit and already have a second checking account elsewhere.

Smart man! Really glad to hear your money is safe. Please keep us posted on what happens with your children's account, ok?

[GawVa]

Cross collateralization is what froze the accounts , also known as a set-off
my kids accounts are fairly new and it is on the paperwork included when they opened them, we keep everything. My account is 20 plus yrs old
it must not have been a common practice when I opened my account.
Just pray my direct deposit does not go there next week.

Attorney said they can freeze until discharge then take afterward still looks
like it goes againt the automatic stay.