My checking account

[jessegirl]

I have paid all of my credit cards online for years and now that I am filing chapter 7 and not paying the credit cards, can they just withdraw the money out of my checking account? I NEVER set up Automatic debit withdrawal, I always went in an physically paid the cards thru my checking account online. Now, I do save my information like checking account numbers online on the credit card website. What should I do? ALso, if you say close the checking account and open another, what would the trustee say about me closing and opening another one?

[TEW]

Jessegirl
I have been doing the same thing for years. It took me a while to get all the ones i had setup for automatic payment to stop. but those were all my fault.
I don't think the trustee will have a problem as long as you give him/her the statments. when you do file. I did have to list any accounts i have opened or closed in the last 6 months.

[AngelinaCat]

From what I have read here, if you have your checking/savings account at the same institution as your CCs, then yes, they can indeed pull money out of your C/S accounts to cover the cards. This is called cross-collateralization. You need to get your C/S accounts located someplace else ASAP.

Please see ‘Lajazz947;s thread, ‘Right of Offset.’

Good luck to you!

[jktrading]

I have paid all of my credit cards online for years and now that I am filing chapter 7 and not paying the credit cards, can they just withdraw the money out of my checking account? I NEVER set up Automatic debit withdrawal, I always went in an physically paid the cards thru my checking account online. Now, I do save my information like checking account numbers online on the credit card website. What should I do? ALso, if you say close the checking account and open another, what would the trustee say about me closing and opening another one?

I would imagine that as long as you told the trustee the truth, ie. you closed the account because you were worried about unscrupulous creditors debiting it, that you would be fine. I believe they are only looking for the truth, AND all of your assets of course.

BTW, I have all my cards tied into my bank account that I would manually pay on every month, and I'm closing it before I'm late. What's from keeping someone from debiting you, and saying, "you did it." I don't have a credit account with the bank where my checking is, but you never know, and I'd rather not even worry about it.

[TEW]

cross-collateralization can be done with secured loans and it is not done with checking and savings accounts and it is mostly CUs that do that.

[jessegirl]

Ok, so if I understand this right - As long as I do not have my checking/savings accounts with the credit card companies (same bank as CC's) then there is nothing to worry about? As i said before, I would always pay my credit cards online and I did store/save my checking account info on the CC's web-site. So they cannot just withdraw money out of my checking then right? Sorry, if I sound stupid, but I just want to make sure that I am understanding this correctly. Thanks

[TEW]

cross-collateralization is when you have say a car loan and a CC in the same bank lets say for argument sake. The bank may place a lien on the car for what you owe on the CC. ALL LOANS ARE CONNECTED.

[epiphany]

Ok, so if I understand this right - As long as I do not have my checking/savings accounts with the credit card companies (same bank as CC's) then there is nothing to worry about? As i said before, I would always pay my credit cards online and I did store/save my checking account info on the CC's web-site. So they cannot just withdraw money out of my checking then right? Sorry, if I sound stupid, but I just want to make sure that I am understanding this correctly. Thanks

In my experience, only one tried to withdraw anything and that was an automatic debit that had been set up. I told them to quit but they didn't and sent the account into overdraft, because there was nothing left in there to debit..I had already set up a new account at a new bank. I included the overdraft in my BK.

I paid ALL my bills online and other than the one mentioned above, they were all one-time payments I would make each month. None (24 accounts) tried to tap my account. Unless you have automated withdrawls set up, they shouldn't try and tap your account either.

Good luck,
ep

[jessegirl]

Ok great. I always do one time payment. So I am safe.... I cannot wait until this is all over with.

[liz417]

Ok great. I always do one time payment. So I am safe.... I cannot wait until this is all over with.

Hi there Jessegirl,
After reading about 'this' kinda thing on this board, I was frantic! I always paid my bills (manually) through the websites and was concerned when the CC/CA started calling and they would "automatically" take out the $$ since they have my account number(s) on file. I tried to go back in and delete my bank info (as suggested), but it wouldn't let me without updating with new info! I spoke to my attorney and she said that *IF* it did happen, we would deal with it then, but in the 25 years she's been doing this, she's never seen a company take money out of an account (although, I've read it here on the collections forum!), she told me not to worry about it and he also brought up cross-collateralization (but I don't have those cc/credit union stuff), so I'm safe!

Good Luck and try not to worry so much...You'll be fine....

[BnkrptcyLwyr]

Ok, so if I understand this right - As long as I do not have my checking/savings accounts with the credit card companies (same bank as CC's) then there is nothing to worry about?

In general, that is right.

Also, if you file bankruptcy, and the creditors are notified, and they end up taking out money after they are notified, that is a violation of the automatic stay and they can be sanctioned.

[jessegirl]

Ok, thanks. Now, that brings me to my next question - If i have retained an attorney and have not filed yet, we are looking for sometime in sept. can they call my neighbors or family members up? I am so sick over possibly having my neighbors, which by the way will go thru the town like wild fire know. Are they allowed to do that? and how do they get your family members numbers if I never gave it to them on the app?

[BnkrptcyLwyr]

Ok, thanks. Now, that brings me to my next question - If i have retained an attorney and have not filed yet, we are looking for sometime in sept. can they call my neighbors or family members up? I am so sick over possibly having my neighbors, which by the way will go thru the town like wild fire know. Are they allowed to do that? and how do they get your family members numbers if I never gave it to them on the app?

Until you file for bankruptcy, they are not prevented from taking collection actions. Furthermore, depending on who is doing the calling, the Fair Debt Collection Practices Act may not apply. The act generally applies to collectors collecting on someone else's debt, not to Citibank calling to collect on Citibank's debt.

[Cali]

If you have automatic withdrawals, then I can see them taking the money. If you do it manually each month, I don't see how they could do that because you haven't authorized them to take it monthly.