Safe Deposit Box

[concerned]

I owe money on a credit card that was used as overdraft for my checking account. This amount was one of the creditors listed in my bankruptcy. I also have a safe deposit box with bonds that were gifts to our son. I have emptied my bank account and opened a new one at another bank for fear they might freeze it. Should I also close out the safe deposit box?

[derf]

I owe money on a credit card that was used as overdraft for my checking account. This amount was one of the creditors listed in my bankruptcy. I also have a safe deposit box with bonds that were gifts to our son. I have emptied my bank account and opened a new one at another bank for fear they might freeze it. Should I also close out the safe deposit box?

It may be wise to do so.

Per BK law, you are required to list ALL assets, including those within your Safe Box.

Regarding the bonds, if they are in your son's name, then you have little to worry about, as they are technically not yours.

[Minnymouth]

Have you already filed BK??

If so you best leave the safe deposit box alone.... or you will cause the trustee to go looking for anything and everything....

If the bonds are your sons, then their safe....

Closing of accounts, emptying savings accounts, closing safe deposit boxes are NO, NO's IF YOU HAVE ALREADY FILED....

If not go ahead, close them out....

But you sure don't want the Trustee LOOKING for stuff..

Minny

[concerned]

Is it ok to remove stuff

Hi Minny:

Thanks for the tip. I guess I didn't think of that. My husband seems positive all the bonds are in my sons name, but I know some were made out to my husband, but just as custodian. I'm fairly certain our son's name are on all of them. Just to be certain, I wanted to take them out and look them over. I thought I might want to make copies for documentation & then put them back. Do you think this is ok?

[sunshine08]

Sure. I would copy them, put them back. You need to leave assets and credit along during bankruptcy.

[Minnymouth]

Going to your safety deposit box right before or after claiming BK can send up a red flag to the trustee.

Remember there are "no records" of what you put into or take out of your deposit box.... (not like a checking account or savings account).

You don't want the trustee "wondering" what you removed from the safety deposit box....

He may ask you WHY you went to it and opened it right now......

If you do open it and look at the bonds, when the trustee ask be honest about it and maybe it won't cause a problem....

You may not have a problem since many people keep their deeds etc in a deposit box.

Just a thought,

Minny

[concerned]

I didn't take anything out. We originally reported that we had bonds in our son's name totalling $450. They were all bonds for our son, but I had this nagging feeling that some of our family made the bonds out to us because they thought it was more prudent. I went to double check this informaiton and the next day faxed my attorney an exact update of what was in the box. Some were made out to my husband for our son, some made out to me, and some exclusively to our son. I didn't want to be accused of lying and we couldn't recall for sure. We don't have anything else of value in the box. Do think this is ok?

As far as our checking account, our attorney advised us to open another checking account at a different bank because one of our creditors is the overdraft for our checking account. We haven't closed the account yet, but we plan to in the future. Should we wait until after bk process to close it? We did stop our direct deposits, again at our attorney's suggestion.

[AAAArt]

Well, if you are concerned, why not just take the bonds out of the box to make sure that the bank doesn't freeze it. You've already been there and have nothing but your word that all that was in there was the bonds.
I don't have any idea about the laws re: safety boxes, but you don't want to have your child's bonds tied up because of owing money to the bank.
It seems to me that you're overly concerned over this issue. You made a mistake, you've done your best to correct it. That should go a long way.
If it was me, I'd go ahead and get the bonds out while you are still certain that you have access and then just go ahead and take them to the 341. Or do whatevver your lawyer says.
Personally, I use a tin can buried in the backyard, guarded by a pit bull staked over it. (And this is not easy, as I live in an apartment!) Art

[concerned]

Personally, I use a tin can buried in the backyard, guarded by a pit bull staked over it. (And this is not easy, as I live in an apartment!) Art

Too funny!

You are so right! I am overly worrying for nothing. We only owe the bank a few hundred dollars. I don't even have a problem paying this back, but I know I can't decide who gets paid back and who doesn't. The bonds are also not worth very much. We could replace them letter if we had to. I guess I will just leave well enough alone!

Thanks for all the feedback.

[paulakay1968]

Closing of accounts, emptying savings accounts, closing safe deposit boxes are NO, NO's IF YOU HAVE ALREADY FILED....

If not go ahead, close them out....

But you sure don't want the Trustee LOOKING for stuff..

Minny[/QUOTE]

I hope I doing this correctly. Bear with me as I haven't used "quotes" before. Anyway, regarding closing of accounts being No, No's. We just filed CH 13 right before the deadline. At a credit union, we have 2 checking accounts, 2 savings accounts, and an unsecured line of credit. Upon the credit union learning of the BK, they froze all the accounts. When I talked to the collections officer, she informed me that the money is still mine; however, since there is an unsecured credit line that will be involved in the BK, we are no longer allowed to retain other accounts (checking & savings) since the credit union is taking a loss on the credit line. She said the only exception would be if we could pay it off (besides not having $2300 to pay in full, I know the Trustee would disapprove) or to have it reaffirmed (not allowed in a CH 13).

I was figuring on just closing the accounts as soon as all checks and electronic debits are cleared since I am no longer allowed to use any of the accounts. After seeing this post, I am wondering if this is not the proper thing to do until after the 341. If it makes any difference, the end result of closing these accounts will only be about $650.00

Thanks for any advice,
Paula

[AAAArt]

You say that they "froze" the accounts. I do not mean to worry you on a Sunday, but I would call them on Monday and ask them to explain exactly what they mean by "freezing" the accounts and what rights you currently have. Will they pay the cheecks and electronic debits if they froze the acct. or will they deny you any access to the money in there, regardless of when you wrote the check?
If it's "frozen" as I understand the term, then you wouldn't be allowed to close it and take the money out either.
You talk about losing $650. Does that mean that would have been your balance afterr current checks and debits? I can't see how else they could cost you that much between now and discharge.
Now that I've scared you half to death, I think that there's a bright side to this. You said you filed chapter 13. I think that the CU and the Trustee will view things much more favorably in that situation. A lot of us here are talking about chapter 7 - no asset cases. That's why the strict prohibitions. We have forfeited right to everything until our cases are resolved.
I think that it's a concern that they "froze" your accounts. because I don't know what that means.
Best wishes Art

[paulakay1968]

I am confused too!

I am not sure exactly what they are doing for sure. 2 Days prior to discovering this, I was using my debit card and didn't have any problem. I had a check I received from someone and was out of cash so I figured instead of depositing the check and then turning around to go to the ATM I would just cash the check. The teller informed me since they became aware of the BK and I had the unsecured line of credit, they put a freeze on the accounts. She also stated the the money was still mine; however, she couldn't access the accounts at that time. The check I was trying to cash was from a different bank so she said I could go to that bank and cash the check without any problem, I just couldn't cash it there. She also gave me the name and number of the collection person to contact regarding the accounts.

When I talked to the collection person, about the only thing she said was that they had a policy that no one could be member if there was an uncollectable balance on any account. She said unless we could somehow pay the credit line and/or have it reaffirmed that we would no longer be able to be members and would have to close the accounts. She said if we had filed CH 7, it wouldn't be a problem as we could have reaffirmed the credit line but told me to talk to my attorney about it and see if there was any 'legal' way of paying the line of credit through the CH 13.

I have checked the accounts online and they have been covering outstanding checks and also paid an automatic withdrawl for one of the bills so I am assuming I can close the accounts and obtain any funds remaining after everything clears. The worst thing about this, besides the fact that I really liked the credit union is I just ordered $60.00 worth of checks and/or deposit slips for the accounts that are going to be totally worthless once the accounts are closed.

Thanks for the response and I will try to let you know the end results.
Paula