Close my checking account?

[TheAbyss]

I'm in the planning phase of my Chapter 7. I've noticed that some people close their checking accounts, before filing. Is this always necessary, or are they special situations? And if it's ok to leave it open, should I maker sure I keep most of my money out of it, before/during filing?

Thanks in advance.

[jeb]

Abyss, I believe they recommend closing your account IF you have other loans or CC's with the bank. Seems most banks have in the small print that they can take money out of your account to make the payment - cross collateral.

If you don't have a CC or personal loan/auto/mortgage with the same bank it shouldn't be a problem. - jb

[debtmonster]

Make sure you open a new checking account some place else FIRST!

[fltoo]

Also, if you ever get a judgment summons, you should close the account ASAP, so they don't levy the account.

You have about 20 days to close it after a judgment, so no need to worry.

[TEW]

I never changed my bank and i had a discharged HELOC where I have my checking and saving DW had 3 judgments and I never had a problem. I had onr bank I had a loan and a savings they took a loan payment but I called the BK department and they put it back.

[fireworks]

If you had any payments on automatic draft from your bank account, I would advise you to close it and get a new one. I had several card accounts set up to automatically withdraw the minimum due from my business checking account. Once the decision was made to file bankruptcy I stopped those payments. AMEX took a withdrawal last week for $40+. I opened a new bank account and started the process of moving all of my automatic stuff over (credit card processing, other regular monthly bills) to the new account and new debit card. Today I see that BOA hit me for over $1200 (probably 2 months payments plus late fees). As soon as I know my credit card processing has moved over to the new account, I'll be in the bank rejecting both of those transactions as unauthorized and closing out that old account.

I don't know if any other companies will do that, but BigBoy2U apparently had the same experience with the same companies. I should have paid more attention to him and closed that account faster. See here:

http://www.bkforum.com/showthread.php?t=33968

[TheAbyss]

If you had any payments on automatic draft from your bank account, I would advise you to close it and get a new one. I had several card accounts set up to automatically withdraw the minimum due from my business checking account. Once the decision was made to file bankruptcy I stopped those payments. AMEX took a withdrawal last week for $40+. I opened a new bank account and started the process of moving all of my automatic stuff over (credit card processing, other regular monthly bills) to the new account and new debit card. Today I see that BOA hit me for over $1200 (probably 2 months payments plus late fees). As soon as I know my credit card processing has moved over to the new account, I'll be in the bank rejecting both of those transactions as unauthorized and closing out that old account.

I don't know if any other companies will do that, but BigBoy2U apparently had the same experience with the same companies. I should have paid more attention to him and closed that account faster. See here:
http://www.bkforum.com/showthread.php?t=33968

I didn't set up any auto payment, but I did pay my bills from my Bank's online bill pay. But it was something I did month to month, never auto-pay. Does that mean I should be ok with that?

[SubPrimeME]

Actually, from how I understand it is that they can freeze your checking account(if it's tied to a debtor). It's a temporary freeze, but if you auto payments they won't go, and you can't use the ATM etc.

So as other's have stated, the best advise is to open a new account that you are not discharging with. For me it was Wells fargo checking- I have Wells Fargo student loan... Froooozeeeen.

[fireworks]

In my case the checking account is not with either of the banks that have withdrawn funds. My checking accounts are with a small local bank, the credit cards are big national groups (BOA and AMEX so far).

[fireworks]

I didn't set up any auto payment, but I did pay my bills from my Bank's online bill pay. But it was something I did month to month, never auto-pay. Does that mean I should be ok with that?

I would THINK that if you were sending the payment from your bank, not telling the CC company to draw it, then you're OK. That's just me thinking which is a bit shaky these days.

[SubPrimeME]

In my case the checking account is not with either of the banks that have withdrawn funds. My checking accounts are with a small local bank, the credit cards are big national groups (BOA and AMEX so far).

On the day you file, have very little in it, I had less then 20 bucks in my account. You have to show what you have in your account at your 341- as of the day you filed.

You shouldn't have any issues from what I can see though- as to the needing to open another account.

[fireworks]

SubPrimeME, I SHOULDN'T have any problems - but I've already had two unauthorized withdrawals from that account. AMEX and BOA have both taken money out over the last week. As soon as I get all of the automatic stuff switched over to the new account I'll be closing the old one (and disputing the AMEX and BOA withdrawals as unauthorized).

[SubPrimeME]

SubPrimeME, I SHOULDN'T have any problems - but I've already had two unauthorized withdrawals from that account. AMEX and BOA have both taken money out over the last week. As soon as I get all of the automatic stuff switched over to the new account I'll be closing the old one (and disputing the AMEX and BOA withdrawals as unauthorized).

Unauthorized? That sucks. One other thing, make sure you tell your atty that you are opening a new account, the trustee will want to know about it....