Seize $$ from my checking account???

[empireforest]

My wife and I filed Chapter 7 last week in Georgia. On the list of credit cards included were two cards from Bank of America, each carrying a sizable amount of debt.

We also have two checking accounts with BOA. One of them receives direct deposit of payments from my consulting client - and a sizable chunk is about to be deposited.

My question is: can Bank of America seize the cash out of our checking account to offset the credit card debts we owe them?

Thanks for your help.

[BKParalegal]

Not after you filed, but they can and will shut your accounts down. I would move them yesterday.

Good Luck

[empireforest]

We have already filed, so if what you are saying is correct, we should be okay - they can't take the money out. Right? If they shut our checking accounts down, that's okay, as long as we can get our money out.

[empireforest]

If they shut our checking accounts down, will we be able to withdraw the money that is in them pre-shutdown?

[BKParalegal]

They will or actually they should send you the funds certified, but why test it. Get it out ASAP is my advice

[Priceless ProSe]

My wife and I filed Chapter 7 last week in Georgia. On the list of credit cards included were two cards from Bank of America, each carrying a sizable amount of debt.

We also have two checking accounts with BOA. One of them receives direct deposit of payments from my consulting client - and a sizable chunk is about to be deposited.

My question is: can Bank of America seize the cash out of our checking account to offset the credit card debts we owe them?

Thanks for your help.

There are multiple threads on this site regarding banks taking funds from checking/savings accounts post BK filing when there was a credit card with the same bank, multiple threads. I dont think this would be legal, but it obviously happens. Would you really want to goto court to fight for this money back? How much would that cost you/ I agree with the others in that, I wouldnt leave this up to chance. I would rather close the account, call the client and have them stop the payment. Anything rather than letting the bank take the money and you have to try and get it back.
Go withdraw all you money today, and shut the account right after this. (Well this is what I would do at least, but once again im not a lawyer)

[Help!]

B of A can do all sorts of things... the possibilities are endless. They locked me out of my account and sent me an email that said "Due to suspected fraudulent activity and recent failed attempts to access your online account, your account has been locked for your protection. Please contact us....". How sneaky is that?

My advice: get your money out ASAP and close those accounts!!

[JRScott]

It is likely that those accounts have cross collateral clauses which are standard in the industry these days. If they do yes they could seize any assets in the accounts. As pointed out above once notified they'll most likely seize all assets in the accounts. If this is not sufficient to cover the balances you'll get nothing, if it is more than enough they should mail the difference to you.

It would probably be in your best interest to move your accounts to another bank.

[msndsy]

We had a BOA account and a included one of their cc in our filing. BOA didn't touch our account and we never lost our online access. We did close the account with them because we found a bank that we liked better.

[dragonnfly]

We had a checking account through Huntington Bank and we filed on the overdraft protection account we had attatched to it. We were advised by this board and our lawyer to change banks. We live in the middle of nowhere. Huntington is the only one with in 15 miles of our house. We emptied our account opened one at National city and waited. Huntington converted my checking over to one that didn't have the fees that came with having overdraft protection and never closed it. I even asked when they called and inquired about changing to the no fee account if they would close it because of the BK and they said No. I waited until we were discharged just to make sure and we moved it all back to Huntington and closed NC. I did only file on $660 with them though, maybe if it had been more they would have closed it and booted me out the door. Dragonnfly

[BK Overwhelmed]

I agree with taking your money out NOW. We filed and had 2 credit cards through our credit union and an auto loan attached. We called them several -months before filing and asked if we ever became late on our auto loan...could they pull funds from our checking. We were told NO...that would not happen (from the credit union). So we had them remove the auto payment that was happening in May. This month...our truck payment wasnt even 30 days late and they went ahead and deducted the money from our checking. We called them and they basically said...are you keeping the car or no? We weren't 100% sure. So they guy said I will refund your money today and you need to come in and cash out and bank elsewhere! WOW! My husband and I both have only ever banked with them for over 15 years. They kicked us out and I feared we wouldn't be able to open up another right now in the middle of a BK with poor credit. Luckily we were able to...but wasn't expecting all that drama. PULL YOUR MONEY OUT.

[Frogge]

Here's a good thread:

http://www.bkforum.com/showthread.php?t=26579

[Frogge]

This one's even better and related to B of A:

http://www.bkforum.com/showthread.php?t=26524

[HopeFaith]

We included over $80k in line of credit and CC debt with BofA, and held our checking and savings with them through the whole process. They never touched them. We still have those accounts open, and they leave us alone. We just moved to Chase last weekend, to have a fresh start with a new bank. But... BofA never gave us any problems, they were really reasonable.