Question regarding Bank Accounts

[nymark68]

Hello everyone I'm new to this great forum, whish found it and read more before fileing

I noticed some talk about bank accounts being frozen after fileing.

So far mine are still open, I use HSBC and TD Bank.

My question is regarding to using funds in the account.

My laywer never mentioned anything about not using my accounts or touching the money in them, did he neglect to tell me somthing here?

When I filed, one of the forms stated bank account balance of around $10,000 between all accounts. since then I have been using the accounts as normal, writing checks to pay bills, debit card purchases, atm withdrawls etc. This is also the account for my pay direct deposit. Needless to say there's not much left in my accounts, living pay check to pay check right now.

[jsparkles]

I was worried about this also when we filed, but it has not been an issue for us. We filed in October, and have been using our checking accounts since then with no problems (America First and Mountain America Credit Union). One of the accounts is even a creditor listed in our BK.

[buffetbuster]

A couple of our account we were filing BK on were with our Credit Union. Our attorney suggested us open a new account elsewhere, because they would more than likely freeze our account. They did freeze it, but thankfully we already had our Direct Deposit going to the new account. We were told not to make any unusual purchases in our new account though. Do everything you normally would, pay bills, gas, debit purchases, dinner, etc? Just nothing extravagant or out of the oridinary.

[jst4f]

If you have a credit card, mortgage, or other type of loan with a bank, a few banks (but not all) will freeze the account. Some (but not all) will even try to drain the account to pay some of what you owe. My understanding is that if taken to court by you or the BK Trustee they will be forced to reverse their actions. That takes time while you don't have access to your money. Our attorney told us to move all our accounts to banks where we won't be discharging a debt. We did that about 2 months prior to filing. My guess is if they haven't done that by now, they won't and you can continue to use those accounts. If you want to be conservative, try to get new accounts now. I have tried tonged new accounts since filing BK7 but there should be thread in this forum on that subject for you to research.

[btbeme]

Hard and fast rule - do not bank where you owe money. Period. The bank will seize your money, swim around in it like Scrooge McDuck, take pictures of themselves playing with your money, and leave your accounts littered with zeros.

Otherwise, some banks will occasionally freeze your accounts once they receive the BK notification. This is relatively easy to fix, so long as you don't owe money to that institution.