Checking after filing...

[Winger19]

I have a checking account with my name on it. I also have a checking account in mine and my wifes name.

I do not have any bad checks, loans, CC's or anything else with this credit union that will be included in BK. I haven't used these accounts in over a year. They have the minimum $5 in them. Can I start using them again or should I open a brand new account?

If I have to open a new account could someone please explain why. My wife and I are both wondering.
Thanks!

[copper2]

Hi Winger19, from my experience in the BK process, I had worried about my checking account too (not a credit union) and I was informed by my legal people that "credit unions are different." I think this pertains to defaulted loans/credit with them, and then a checking account as well with money sitting in it. Since your relationship with them is unaffected, I might give it a go. Having a typical bank, I was told not to worry about seizure of any funds in my checking account. I will be following up on this post to see what other opinons you receive. Good luck - Copper2

[keepmine]

If you are including no debts owed to the CU, they have no right to setoff.
I can't see a reason not to use the accounts.

[Winger19]

Thank you for the help! I was thinking we would be alright...we've done our banking there for over 15 years and have never had any bad debt with them.

I think it should be alright to use the accounts as we would have just open a new account at the same place anyway.
Thanks again!

[SinkingFast]

If you're in good standing with your current bank/CU, there really is no reason to have to open a new bank acct. The only reason I can think to open a new bank acct is,........... It won't be part of the BK Estate.

When I joined here, this was discussed at length. The consensus opionion was to file BK, then go the very next business day to another bank and open a new acct. That way, your BK would not have time to become public knowledge, AND the new acct wouldn't be part of the BK Estate.

Your BK Estate is set the day you file. All assets, accts, monies on hand on BK filing day fall to the care and custody of the Trustee. A bank acct opened after BK filing day is not included in the BK estate.

[Winger19]

So if I deposit money into the account is it considered property of the trustee and could be seized?

[keepmine]

Each state has an exemption for cash on hand at the filing date. You want to time your filing so that you have as little in the bank as possible else, excess funds could become the property of the estate.

[pink_amulet]

We had no negatives, or fees on our checking. when i was sending the final payment to my lawyer it had to be in a money order so I went to my bank and had one made. I just asked the girl....does Amcore (my bank) close accounts due to BK? She said no UNLESS you include them...bank fees, NSF, etc. I said great. My account never had any issues, and hubby's direct deposit never messed up or anything.
Our lawyer said just keep under $150 in the bank on the day of filing!

So seeing that you are not including your bank, I don't see why they would.

Just a side note...I know someone who had Bank One, and they were perfect customers with their checking, no fees or charges, however since she included the Bank One cc on her BK they closed her checking account as well.

Just ask hypothetically you bank...they can't do anything for just asking.

[Winger19]

My Ch7 was filed on 7/12 so they probably already know about it.

I don't have any credit cards with them that are getting filed on either. Both accounts had the minimum $5 in them for about 11 months prior to filing.

We are using an account in my wifes name right now and I've filed an individual BK so maybe we'll just keep using her account for now and see what happens. It's just a pain for her to have to write out all the checks.
Thanks!

[anonymuse]

Even though I am not in the arrears, my attorney said that it was smart for me to get another account outside of my account from the credit union (I do have a HELOC from the CU--always paid on time.) He said better safe than sorry since you never know what a CU might do.

[lrprn]

Our checking account was at our local bank that also holds our second mortgage. In addition, over several years my husband ran the account's overdraft protection 'loan' up to $3500 before our financial crash, so our bank became an unsecured creditor as well. To ensure the bank couldn't take money from our checking account to cover the overdraft 'loan', we opened another checking account before we filedwith another local bank and left $5 in the old account. Since we had a wonderful 19-year relationship with our first bank and paid off several loans with them over the years, leaving them has been one of the more painful aspects of filing bk for us.

[Danielle1981]

You know.....some of them might not....but I was trying to get an account at Public Service Credit Union and they said they constantly review credit and cancel you accordingly. They wouldn't even let me get the dang account because I had bad credit.