Do you lose bank accounts when you file Ch 7?

[pa308]

This is confusing me a little.

I have a checking account at Citizens where I also have a home equity loan. I currently have my bank account set up to automatically make the HE loan automatically for more than the minimum, then adjust it down as payment goes down. I plan on reaffirming them when i file.

Most of my pay goes into that account as I pay most of my bills out of there and also have a moneymarket account where i have about 250 a month automatically deposited each pay from my employer.

I do not have negative balances at my bank.

Am I hearing correctly that the bank may take everything that i have in there because i filed even though i am not currently in default with them??

[deafbroke]

I have 2 checking accounts with a credit union, a debit card, credit card and car loan with same credit union. When we filed we did not list any of the accounts to discharge them. The credit union found out we filed 7 and cross collateralized the car loan and credit card but did nothing to the checking accounts and debit card.

DB

[Cali]

The only way you couldn't use your debit card would be if you are negative in your account.

so you can keep using your debit card if you were not in default correct?

[halloweendmb1]

so you can keep using your debit card if you were not in default correct?

[2muchstress]

from my experience... as my chapt 7 is now discharged, on a hearing day, i had to show my bank statement to show that i only got 2k and that's it. im still using my bank acct. with debit card... i even made deposits to my acct hoping to keep up the relation with the bank for long term.
i had visa credit cards with them, and was using it to build credit. but later the bank closed visa accounts only due to bankruptcy history. i was disappointed but it's the law they gotta go with, i guess.

i hope that what i own in my bank, and savings acct i opened won't be affected in a near future b/c of bk.
what do you think?

[newlifer24]

Closing checking accounts

I have worked for a bank for the past 10 years. I have never heard of any checking account being closed due to bankruptcy, unless the account had a negative balance. Once the negative balance gets "charged off" the account will get reported to chex systems. This is what will prevent someone from opening a checking account somewhere. I do know that at my bank, if a customer has been reported to chex systems, they can still open a savings account. There has also been instances where we will open a checking account for someone listed on chex systems, and then monitor the account closely for a time period.

[Christinajp]

oh no sorry for the confusion.

[Cali]

From reading your original post, I thought you were saying to keep a small balance on the closed account, because they didn't make sense to me.

Have a small balance, under $100 on the day that everything gets filed..he even said to have my hubbys mom take my husband off as co-owner on that account that is hers

[Christinajp]

Have a small balance, under $100 on the day that everything gets filed..he even said to have my hubbys mom take my husband off as co-owner on that account that is hers

[Cali]

Have a small balance on the closed accounts? or the new one?

When I spoke to our lawyer yesterday, we suggested opening new ones at another bank, and closing the ones we have now, then to list those account also, but to say closed, and also to have a small balance of course etc.

[Christinajp]

When I spoke to our lawyer yesterday, we suggested opening new ones at another bank, and closing the ones we have now, then to list those account also, but to say closed, and also to have a small balance of course etc.

[Cali]

That doesn't make sense.
My paperwork doesn't say that at all. My attorney said not to close bank accounts but to make sure you transfer your direct deposit to another bank and leave as little as possible in the one you aren't using anymore.

We are filling out paperwork and it says in bold print that they strongly recommend closing any CU accts before you file. If we don't have any cc or line of credit with them, why would we need to do this? All we have is a checking account with a debit card there.

[Stilltheone]

I thought this was interesting to read....

We are the same as Brisco...

We have a US Bank checking account along with 2 of their credit cards PLUS a checking account advance with them....we listed all 3 in our bankruptcy.....

Of course, before we filed, we went to a cu and opened up a new checking account....

It's been over a month since we've filed and US Bank still has our checking account listed as open. They haven't closed it, which doesn't bother me...Our stimulus is being direct deposited into that account...

Once it's deposited it's getting closed.

[twinsplus14me]

Why do they recommend closing credit union accts?

We are filling out paperwork and it says in bold print that they strongly recommend closing any CU accts before you file. If we don't have any cc or line of credit with them, why would we need to do this? All we have is a checking account with a debit card there.

[Cali]

We use our local CU now and we keep as little in as possible.