Overdraft line on Checking Account

[woeisme]

I'm in a CH 13, but my SIL just filed for CH 7. She filed last month and hasn't had her 341 hearing yet. Anyway, she owed ~$700 on an overdraft line at the bank where she had her checking account, but for some reason didn't include that as one of her debts when she filed, her lawyer overlooked it and she for some reason thought it didn't "count" as a debt since it was linked to her checking account, so not a "real" line of credit in her eyes (although they charge interest, fees, and such that are so high it'd make credit card companies drool!) Anyhow, she went to make a payment on her overdraft at the bank and the bank wouldn't take her payment because they had been notified of her bankruptcy filing, even tho not listed as one of her creditors. She got real rattled and upset, even tho they just closed her overdraft line, not her checking account, which in my opinion is great, but for some reason she was all bent out of shape over. (Maybe she hoped to keep using this overdraft line after CH 7 and kept it out of the BK on purpose, I have a hard time understanding her thinking most of the time to tell the truth; she's also keeping a car worth $3000 that she owes $7500 on and plans to get a new car after the CH 7 goes through but WON'T surrender the car, in fact signed reaffirmation paperwork on it already, totally against my advice! I'm still trying to talk her into giving the car back at the 341 if she can.) Anyhow, I guess my question is, since she didn't list the bank as a creditor, do you think they will try to come after the $700 out of her checking account AFTER the CH 7 discharges? Do you think I should advise her to open one elsewhere, and then close that one so they don't try to seize her $ after the BK discharge? Or do you think since they know she filed CH 7 they have already written it off and won't bother her about it afterwards, even if they weren't specifically listed as one of her creditors, since she has a no asset CH 7? Also, does anyone know if you can give the car back, say at the 341, after signing a reaffirmation? My SIL is very un-knowledgeable about her BK, and tends to wait until after she does something to start worrying about whether it was the best thing to do or not, instead of figuring it out before she does it... but I'm still trying to help her out as best I can. Thanks!

[AngelinaCatHub]

Greetings woeisme, it's been a long time since you've posted. Welcome back.

I don't believe your daughter has suffered enough. From your explanation, she is not taking bk seriously and will fall right back into debt (as she is intent on maintaining) after her discharge.

At this time, you are beating your gums and worrying about a person who seems to know it all. She has enrolled into the school of hard knocks and I would advise you to let that school teach her. Tell her one more time about what she is doing (in a nice and diplomatic way) then 'wash your hands' of it. This is what we parents do. It's called "tough love".

At this time, take care of yourself. When she fails, don't bail her out, you won't be doing her a favor. 'Hub

Edit add on: I was corrected by Mrs. It is your Sis-in-law. Same advice applies.

[woeisme]

Thanks Hub. It's actually my ditzy sister-in-law, not one of my stepdaughters.

I agree, she's clueless and hasn't learned any financial lessons since deciding to file CH 7, but I do worry about her because she is in her mid-50's and is a nurse's aide with no health insurance, no retirement savings, etc, and a disabled husband who's an alcoholic... yada, yada. Hard not to worry about family, even when you know you can't "fix" them. (She also likes to "escape" from her worries by gambling, usually just bingo but sometimes casinos too, and every time we talk she swears she's done with gambling, but then....)

But she's not someone we ever give financial help to, just advice, but even that can drag you down, especially when they won't heed it and then want a shoulder to cry on when the problems you predicted when giving them the earlier advice come true! Oh well, I know you're right, whatever happens, happens, shouldn't be my worry. Just hard to watch a train wreck without wanting to try to intervene!