Bank Account With Credit Union

[Dannmcg357]

Forgive me if this is a repeat question, I have tried to search for a post with no luck. After you file 7, I understand your bank account is 'frozen'. For how long is it frozen, how do I pay bills? Can I open another account after I file or can I start using my same one and if so when?

[myid4u2c]

The only risk to your account being frozen is if you have loans with the CU. You do not want to have an account at any bank you owe money to.

[Dannmcg357]

I couldn't make out from others posts weather or not I can continue to use my bank account (no loans, just checking and savings) as normal for rent, power bill, groceries, etc. Im still confused because it is suggested to empty funds before filing?

[BobMango]

I couldn't make out from others posts weather or not I can continue to use my bank account (no loans, just checking and savings) as normal for rent, power bill, groceries, etc. Im still confused because it is suggested to empty funds before filing?

Your account is not frozen by virtue of filing for bankruptcy. Some banks, most notably Wells Fargo, will freeze your account. Their reasoning apparently being that they are helping the court out.

In reality, the reason to empty your account is that if you have non exempt funds in there, the trustee can take them to pay your creditors. The other reason you might want to change accounts is if you have say checking and savings in a credit union where you also have credit card or other loans that might be late. The reason for this is because credit unions have what are called cross-collateralization agreements allowing them to take your funds to pay on your loans.

So since you state that you have no loans at your bank, you can probably continue to use your account as before. Many would advise just opening a new account to avoid the possibility of any seizure. If you have Wells and they seize your funds, chances are you'll get them back, but why open yourself to the hassle?

[Dannmcg357]

Thanks for clearing that up. I think I will withdraw my rent and grocery money before I file ;)

[ApresMoi]

Thanks for clearing that up. I think I will withdraw my rent and grocery money before I file ;)

I contacted my credit union and asked them what they would do to my checking/savings accounts if I filed. They said 'nothing', as I don't have any credit cards or loans through them.

The two banks that are known for freezing accounts even if you don't have any loans or credit cards through them are Wells Fargo and Union Bank.

[jingle47]

Does anyone know about Chase? I have my checking there as well as a Credit Card. I went to open another checking account at another bank and they would not let me because I had just filed for BK. Now what do I do?

[ready2live]

Does anyone know about Chase? I have my checking there as well as a Credit Card. I went to open another checking account at another bank and they would not let me because I had just filed for BK. Now what do I do?

I would try different banks. We opened one no problem with National City.

As far as credit Union, if you are worried about it, just open a new acct with a new bank right before you file. We let our car go that was with our credit union and they took $104 of what was left in our savings. No freezing, just took it. Better to be safe than sorry.