Bank took $1100 out of my checking account

[debtmonster]

I know.

At least it's nice to have a woman who likes to look good.

[BkinTX]

Still LOL'ing.

[debtmonster]

She's always done them that way since we've been married, even up north.

[BkinTX]

Lol.

[debtmonster]

Using living in Miami as the excuse why your wife has always got her nails done makes no sense to me. You've only been in Miami for a couple months.

She has acrylics done. Those are never cheap.

[OhioFiler]

My wife always gets her nails done. That's the way it has been for years. This is Miami. You want to look good here. This is not some podunk redneck town where people don't care about how they look.

Using living in Miami as the excuse why your wife has always got her nails done makes no sense to me. You've only been in Miami for a couple months.

[BkinTX]

No, I don't think so. I just doubt I will get a competitive rate if I go with Geico bc of the credit check. I don't think they drop you for BK.

I have heard that USAA does, but they are a Credit Union, not just an insurer.

[debtmonster]

So will GEICO dump my insurance for filing BK?!?!?

[LuciluS]

California:

Hope you printed the Code and went to the Bank to retrieve the monies removed from your account. Hope you were successful.

Luci

[California]

The issue here in the OP's first post way back when is that the bank took her funds out of her account BEFORE she filed, probably using a cross-collateralization clause. This is why the bank does not have to return the funds. No filing, no automatic stay protection - her bank had every legal right to do what they did.

Section 553 of the Bankruptcy Code says the opposite. A Bank cannot take the money if there purpose was to obtain a right of setoff against the debtor.

Under cases such as In re Union Cartage Co., 38 B.R. 134, the Bank had to give the money back to the debtor,

WHY?

Because the debtor deposited money into there account, it was taken out by the bank shortly after. Now, if the debtor had $1000 in the bank and it sat there for 90 days, then the bank could take the money since there was no intent to obtain a settoff (the money had just been in the bank to long to imply that). BUT, because the debtor deposited the money and it was taken out soon after, the court said that there intent was to obtain a settoff in violation of Section 553(a)(3).

Section 553 of the Bankruptcy Code will not allow a bank to take recently deposited money to satisfy a debt owed to them and it will let the trustee get the money back if the Bank took the money and as a result "improved there position" as to other creditors.

[DSIG]

Yes, online access is gone. But honestly, I never really used it so no big loss for me.

I have started looking around in case we do have to switch. I know Geico runs a credit check. D'oh!

let us know how it goes with the policies. I take it you did not have a checking account with them?

[BkinTX]

Yes, online access is gone. But honestly, I never really used it so no big loss for me.

I have started looking around in case we do have to switch. I know Geico runs a credit check. D'oh!

[DSIG]

I have no interest in reaffirming and while I do want to keep our insurance policies with USAA, it's not worth being on the hook for the auto loan and cc.

So I am NOT in good standing. Guess that means I'll get dumped when my policy runs out. They have allowed us to make changes to the policy during the bk, which surprised me.

I didnt know you filed. Have they restricted your oline access yet? I dont think they will dump you but I think that insurance rates have become more competitive that you can shop elsewhere. USAA used to be a bargain but now they are just one of the players competing for your business

[BkinTX]

I have no interest in reaffirming and while I do want to keep our insurance policies with USAA, it's not worth being on the hook for the auto loan and cc.

So I am NOT in good standing. Guess that means I'll get dumped when my policy runs out. They have allowed us to make changes to the policy during the bk, which surprised me.

[DSIG]

DM, Bank of America told me they cut my online access (mortgage; I closed checking accts with them) because the content would violate the rules for them as lenders during bk. I don't know if this will apply to your checking acct, but it's a possibility.

DSIG: Do you have any indication that USAA will drop you once your policy expires? Are you bk'ing any debt with USAA.

We are bk'ing a cc and a vehicle with them and we have our home and auto insurance with them. I am really hoping they won't drop us although I have read that they may.

I have cc debt with USAA and all my other USAA accounts are in good standing. USAA wont drop you as long as you are in good standing on your other accounts. They told me that you can even add/remove vehicles on your policy. The only pain for them and for you is that you have to call them with your policy changes. A click of a mouse was always so convenient with them. They also said that you cannot open any new financial products with them for 7 years. Try to reaffirm your debt with them. They told me that if you reaffirm that they wont restrict your online access and its business as usual. The guy I talked to told me that he does not see that many reaffirmation requests as they are hard to get approved by the trustee.