Will I lose my bank account?

[Adchick]

I have had both a checking and savings account with BofA since Oct 2005. I am filing Ch 7 next week. Does BofA care? Will they not want me as a customer anymore?

My concern is that I am in chexsystems due to "the payday loan disaster of 2005". I got the BofA account before my other bank sent me to chexsystems so they weren't aware. That debt will now be discharged in the bankruptcy and I think I read somewhere that someone successfully had a chexsystems entry removed by telling them they filed Ch 7. I hope I am as lucky.

Anyway, any insight on how the Ch 7 could affect my bank account would be appreciated.

Thanks!

[ARO96]

Our lawyer had us switch banks. This was due to the fact that we had a loan out with our bank and my hubby's check is direct deposted into that bank. She said the bank would take our money when they received notification of our bankruptcy filing. This is a credit union for the company my hubby workes for.

We opened a new account yesterday and our old account should be cleared by the end of next week. Then we will proceed with the filing.

My lawyer did not say our ability to have a checking account would be a problem. Hopefully the new bank will keep us.

[Adchick]

That would make sense if you have a loan with the same bank but I don't have anything other than the checking and savings (and nothing is in the latter) so hopefully I can stay put.

Wait...how could they take your money to pay the loan after they find out you've filed? Wouldn't that be a violation of the automatic stay?
(this is just me trying to understand the way it works)

[ARO96]

That would make sense if you have a loan with the same bank but I don't have anything other than the checking and savings (and nothing is in the latter) so hopefully I can stay put.

Wait...how could they take your money to pay the loan after they find out you've filed? Wouldn't that be a violation of the automatic stay?
(this is just me trying to understand the way it works)

That is what I would assume. My hubby's company has tried things like this in the past. Employees are members at the company credit union, they take out loans, they file bankruptcy, and the company takes whatever cash you have in savings and checking. Also, after filing bankruptcy, the company will never loan you money through the credit union again. That is just how they are.

I think it is illegal, but the amount of time and money to get it back may not make it worth it.

My lawyer didn't say we should have any problems with a new bank after we file.

I hope all goes well for you and the bank situation. Tried looking up some info, and couldn't fine any. Good luck.

[lrprn]

any insight on how the Ch 7 could affect my bank account would be appreciated.

First of all, not all banks and credit unions check ChexSystems when you open a new account. Go here and click OK to register (it's free so no worries) to see which banks in your area don't use ChexSystems - http://www.chexvictims.com/

You only have to worry about changing banks or credit unions if you have loans, credit cards, or overdraft protection with money owed through the same bank and the agreements you signed have cross-collaterization clauses that allow the bank to remove money from one account to pay for shortages in another. If all you have at your current bank is your checking account, then you can stay put.

[Adchick]

Thanks lrprn!