Bank took $1100 out of my checking account

[debtmonster]

it's because DSIG said they would restrict his online access to his checking account, DM worries the same will happen to him.

Exactly. I am going through enough grief as it is. I have about $50 in my checking right now and before I was falling back on a Shell gas card to put gas. Now that will be shut off any day.

We were also using the Bank of America and Shell credit card during the last 90 days for small things. I wonder if that will cause any issues. My wife did her nails and charged money plus we ate and spent like $50 bucks for restaurants and stuff. I thought we could ride-through and keep paying on the cards. After we met with the paralegal she said no and that once the banks got wind of the bankruptcy that they would shut both cards off.

[music12]

it's because DSIG said they would restrict his online access to his checking account, DM worries the same will happen to him.

[lrprn]

So after my discharge I won't be able to write checks or pay my bills on-line the way I have been for the past 5 years?

DM, how in the world did you ever arrive at this conclusion from the replies here?

You can write checks and pay bills online from your bank's bill pay feature *during* your active bankruptcy. Why would you think you couldn't do so afterwards? To answer your question, yes, you can write checks and pay bills online through your bank or credit union before, during, and after your bankruptcy.

[debtmonster]

So after my discharge I won't be able to write checks or pay my bills on-line the way I have been for the past 5 years?

[lrprn]

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.

[DSIG]

Is it safe to open a new account the day after filing and change the direct deposit at that time. The exisist checking account can remain open, I guess.

Doing all this prior to filing just means more disclosures and possible questions from the trustee.

My dilemma is not that my bank will rape my checking account. They are actually the only creditor that knows I am filing and their bankruptcy department has been very helpful with explaining their policies. They told me that they will restrict my online access. That makes my checking account with them useless. They said I can retain my other financial products with them (I have auto and life insurance policies) but that I cant open any new products. So, time to shop for a new bank.

[DeadManCrawling]

My understanding is the same as Debtmonster.

once you are filed the money and assets are not yours to be seized. They are actually property of the BK estate, administered by the trustee, and are subject to being exempted (for your benefit) or sold (but only by the trustee) for creditors benefit. I have heard of creditors attempting to levy accounts after or as a BK is filed, but I don't think many of them are successful and get to keep the funds.

[debtmonster]

My lawyer told me that once you file, they legally can't touch your checking account.

I guess I will find out the hard way if they snatch all of my money. They can take a $900 dollar chunk out because that's what my wife owes them on her BoA credit card.

[foolishpast]

Is the difference that Debtmonster is filed? It sounds like they can do this BEFORE you file but not after. Is that correct? I hope so. I too love my BofA checking account. I moved my direct deposit to another bank but I would really like to go back to using my BofA account. I would also assume they can't do it once the debt is discharged, is that correct?

[debtmonster]

IDK our lawyer told us the exact opposite. He had close our account immediatley and change banks.

Then I will have to go "Bock bock bock bagawk" and run. I don't want to do that. I'll just have to wait it out.

[aces67]

IDK our lawyer told us the exact opposite. He had close our account immediatley and change banks.

[debtmonster]

I asked my attorney about this.

My letter to my attorney:

We have a checking account with Bank of America and we have a credit
card with them with a $900 balance. Now that you guys have filed the
bankruptcy for us, should we have any concerns with Bank of America
attaching our account? I read on a bankruptcy forum that I should
close our checking account and open up a new account with a bank that
we're not including in the bankruptcy. I'm happy with Bank of
America. Should I worry?

His response:

They can't do that once the case is filed.

So I guess I will have to wait and see.

[jribe]

I have direct deposit with Bank of America now.

Are they going to close my checking account? How do you get an account with a credit union? I thought you had to be a member of an organization to do this?

if you're filing on debt with BOA - you NEED to get another bank. At least until after discharge. They won't automatically close the account; you go in and request it.

You can go to ANY bank in your area that you don't have debt with. Doesn't need to be a CU - just noticed many people here prefer them.

The problem is (and i work at a major bank) there are clauses that allow for the bank to take funds out of your accounts (any you're list on) to "offset" any debt owed to them.

That is why i am saying to change your DD- either get a check and cash it (then deposit somewhere else) or open an account an another bank and have DD sent there.

You can keep your BOA account open; just don't leave money in it. Make sure you won't get service fees though. That way once you're done with your BK you can go back to them. They can't retroactively take money after you're filed and closed.

[debtmonster]

I think I owe Chase bank for something in my bankruptcy.

I don't want to go to a CU. None of them are close by. Bank of America's are on almost every corner down here. I am happy with BoA.

[DSIG]

I have direct deposit with Bank of America now.

Are they going to close my checking account? How do you get an account with a credit union? I thought you had to be a member of an organization to do this?

Try TD Bank if they have branches where you live. I have not filed for bk yet but will do so next week. About 2 weeks ago I submitted an online app to TD bank. They sent me the paperwork to complete and submit with my deposit. I wont open the account until after I file bk, though.

Another option is Chase bank and they are also all over the place. They sent me an offer of $100 cash back if I open a checking account with them. I think there are some strings attached there like you have to use your own money for the initial deposit and you also have to do dd which you probably will do anyway.

I havent decided now if I will use TD bank or Chase. Probably chase since I heard TD bank does not offer secure credit cards.

Check it out.