bank accounts and credit cards

[c24h44o22]

I'm in the home stretch...just waiting for the discharge to happen. My 341 meeting was earlier this month and all went well. My question has to do with bank accounts. I have a bank account with Chase and also credit cards. My credit cards were a part of my BK. I only have about $2 currently in the checking account. I haven't used the account since I filed for BK. Once my discharge happens, is it safe to put money back in that account or will Chase have the ability to take it, even after the bankruptcy discharges?

[Fresh]

bumping this to the top of the list....please answer for everyone

[MC9199]

I have no checking accounts with Chase, but I BK'd a couple of their cards.

I had about $2000 in cash advances on those cards 70 days before filing, and they were going to start an adversary proceeding to disallow discharge of that.

My attorney settled with them for $1000 so I am having to pay that back.

In a circumstance like that, I suppose they could go after your checking account.

With a $2 balance, are you liable for any low-balance fees, or other fees?

I would suggest finding another bank - there are certainly better ones.

[c24h44o22]

There are no fees. I was just wondering if it was safe to put money into the account after the discharge or would they take any money I put into the account even after discharge.

[marie]

I bank with chase and BK'd 2 cards with them. I also have a mortgage with them that is current. The CC and mortgage information has been removed from the online banking , but the account appears to be functioning normally at the moment.

I filed on March 12th,.

[mtngirl47]

My attorney recommended that I open new bank accounts before filing...he said "don't have your money in a bank where you owe money." I went out and opened new accounts that day.

[goblue]

I also kept about $2 in a Chase checking account even though I opened new accounts elsewhere before filing. I have found that I really prefer Chase's online access/banking so I was hoping to start using them again once my Ch7 is discharged. I asked my attorney and he recommended we close the Chase account altogether and I didn't ask what would happen if I started using it later in time. (kicking myself!)

Looking forward to others answers....

[lamarmundane]

Hi Folks...

New to this wonderful and incredibly helpful forum.

I am wondering if there is a "preferred" amount of time that must pass following last use of a CC before filing a 7. (My last use of any CC was Feb.)

Also...with filing not possible until Sept, wondering how many minimum payments I must make before ceasing CC payments in advance of the filing. (Nothing nefarious here..a simple need to pool funds for attorney and the movers..to move me out of the home I am losing) All CC payments are presently up-to-date. This month (April) is the the first month that I will be missing mortgage payments.

Finally, I am confused as to what to say when the mortgage holders (1st and 2nd) along with the CC folks begin calling. Does one simply say.."I cannot pay at this time ?"
How far ahead of a filing does one typically advice creditors of intent to file ?

Many, many thanks...

LM

[NeedOptions]

Hi Folks...

New to this wonderful and incredibly helpful forum.

I am wondering if there is a "preferred" amount of time that must pass following last use of a CC before filing a 7. (My last use of any CC was Feb.)

Also...with filing not possible until Sept, wondering how many minimum payments I must make before ceasing CC payments in advance of the filing. (Nothing nefarious here..a simple need to pool funds for attorney and the movers..to move me out of the home I am losing) All CC payments are presently up-to-date. This month (April) is the the first month that I will be missing mortgage payments.

Finally, I am confused as to what to say when the mortgage holders (1st and 2nd) along with the CC folks begin calling. Does one simply say.."I cannot pay at this time ?"
How far ahead of a filing does one typically advice creditors of intent to file ?

Many, many thanks...

LM

Great question. I too would like to know when I should file for BK 13 from the date I stop all payments on my credit cards. Thanks.

[Fresh]

My Attorney said No Setoff After Discharge

I'm in the home stretch...just waiting for the discharge to happen. My 341 meeting was earlier this month and all went well. My question has to do with bank accounts. I have a bank account with Chase and also credit cards. My credit cards were a part of my BK. I only have about $2 currently in the checking account. I haven't used the account since I filed for BK. Once my discharge happens, is it safe to put money back in that account or will Chase have the ability to take it, even after the bankruptcy discharges?

I was so glad that you had posted this and I asked my attorney when I met with him a short while ago. My bank is not Chase, but same situation. I have also opened up two additional checking accounts where I have no debts. With this account, my attorney said that AFTER discharge, the setoff is not legal. I know people have noted here that the some banks will freeze funds upon FILING bankruptcy, so I don't see why a bank would not try to do a setoff even AFTER discharge. However, I think in most cases it would be highly unlikely AND I think you would know fairly fast if the climate of conditions was ripe. What I want to see if this particular account is CLOSED by the bank after I am discharged. I plan on waiting for a period. If not, I will start using with more funds as available.

I've had this account for a long time and I really want to use it after bankruptcy so I am hoping for the best.

[lrprn]

Lamarmundane, it's your first forum post, so I'm going to answer you here. However, in the future, when you have questions that are personal to you, then please don't hijack the original poster's thread. Start your own new thread instead - thanks!

I am wondering if there is a "preferred" amount of time that must pass following last use of a CC before filing a 7. (My last use of any CC was Feb.)

The bk law states that within 90 days of filing, any purchases on the cc that may be challenged as fraud by the creditor (because you knew you had no intention of ever paying it back) have to be defended by *you*. Charges questioned that happened 91 days or longer before filing have to be proven by *the creditor*. To be safe, most lawyers will recommend that you not use your charge cards for at least 90 days before filing.

Also...with filing not possible until Sept, wondering how many minimum payments I must make before ceasing CC payments in advance of the filing.

The credit landscape is shifting somewhat with some creditors moving to legal actions sooner these days. It used to be that you had at least 5-6 months (often much longer) of no payments, but now it's hard to predict. This would be a great question to ask during your free initial consults with 3-4 experienced bk lawyers in your area. They will know what's been going on with the national and local creditors lately.

For sure, stop paying any cc's that you know you are going to discharge as soon as the lawyers think it's ok to do so. If you are going to make payments, don't make partial payments - the cc's won't count those. Waste of your money!

Finally, I am confused as to what to say when the mortgage holders (1st and 2nd) along with the CC folks begin calling. Does one simply say.."I cannot pay at this time ?"

That's perfect. You don't have to stay on the line after saying that either. You can politely say "I have to go now" and hang up, even if they are still speaking

How far ahead of a filing does one typically advice creditors of intent to file ?

Believe me when I say that creditors and collectors hear this day in and day out. If your lawyer agrees to have these calls forwarded to his/her office when you retain them, then you can tell the creditors/collectors you plan to file and give them your lawyer's contact information.

If you aren't using a lawyer or your lawyer isn't willing to take the calls, then just keeping saying "I can't pay you now" right up until you get the distinct pleasure of giving them your bk case number!

[NeedOptions]

Lrp, can you make up a sob story about not paying? Can they use that against you if you lie about why you cannot pay?

[lrprn]

Lrp, can you make up a sob story about not paying? Can they use that against you if you lie about why you cannot pay?

Please forgive my bluntness, but why do you care what creditors and collectors think? Creditors and collectors only want your money. They don't care why you are in debt or why you can't pay. And they certainly aren't in the business of giving you a break, even after hearing a good made-up sob story.

Just say you can't pay and move on. There are better uses for your time.

[NeedOptions]

Ok, will do. I'm just new at this. I bet when they start hounding me, I'm really not going to care what they think about me.

[lamarmundane]

Hello again folks..and to lrprn a hearty "thank you"...and a "mea culpa" for not starting a new thread. When should one start a new thread ? More specifically, what if my question shares some similarities to an existing thread but also has some differences. Would that be "new thread" territory ?

Thanks again everyone, and in particular lrprn for your answers. This is a great forum.

Sorry for the accidental "hijack"....

Lamar