Can a bank close checking account if you file bk?

[ccsjoe]

I am in the process of moving the monies and direct deposits from my BofA accounts to another bank with which I have no credit relationship.

I am planning on filing and have 3 cc's with BofA that will be included. The question is can the other bank (probably US Bank) close my checking account if they find out I file bk after opening my checking acct there?

I realize this sounds dumb, but stranger things have happened and let's face it, setting up all the online bill payments, direct deposits, etc is a major pain.

[ssmdem]

The only bank I've heard of freezing assets even if you don't have a credit relationship with them is Wells Fargo.

[despritfreya]

"The only bank I've heard of freezing assets even if you don't have a credit relationship with them is Wells Fargo."

Wells Fargo won't be doing this much longer. It just got its hand slapped in the 9th Circuit.

[Fresh]

CCSJoe,

You said close a relatively new account, not freeze an existing account where you have no debt.

From what I have read here, I don't recall a single person here posting that it happened to them with a bank. There's one person I remember who I used to correspond with when she was on the forum, and it happened to her with a credit union.

Here's the kicker with most banks. Read the initial agreement because you may find a provision there addressing "new accounts." Generally, your account is classified as "new" within the first 30 days. During that period, depending on the bank, it has pretty wide discretion as to the ability to close the account. Usually, you get a laundry list of conditions for closing and then a wide open provision which gives pretty wide discretion. I think this varies with banks and that's why I say read your initial agreement for the checking account which you opened.

I opened an account several months before filing bankruptcy just in case my long-term account would be closed. I had no debt there, but you worry about everything. Anyway, I opened months before to get out of the "new account" arena AND to have a place just in case my long-term account was closed just for filing bankruptcy. Neither happened and I'm hoping that you will not have a problem with your new one. I do understand the headaches associated with everything from your direct deposits to your bill pays.

All the best,

Fresh

[ccsjoe]

Thanks Fresh. I think US Bank would do nothing because they would have no reason to be notified of the bk since it does not affect them....or am I just smoking something funky in my reasoning?

[Sara1]

We opened another acc short before filling at US bank and they didn't closed our account.

[ccsjoe]

Thank you Sara1. That's what I was hoping to hear.

[humuhumu]

Not that I plan to ever need to file BK again, but I have definitely learned a lesson in borrowing money where you bank. Never again will I hold checking accounts where I also borrow money, due to that 'cross collateralization' clause where banks can hold up your deposits if you owe them money on another loan/credit card.

[Fresh]

You are welcome. I think Sara gave you great info. This place is such a comfort with the wealth of information.

What I worried about was what people had said about how Wells Fargo was finding out. Apparently, they like a lot of places subscribe to a service that supplies the names of anyone who has filed bankruptcy. Then, the bank looked to see if you were a customer. To me, that is just frightening.

~Fresh~

[WhatMoney]

CCSJoe,

You said close a relatively new account, not freeze an existing account where you have no debt.

From what I have read here, I don't recall a single person here posting that it happened to them with a bank. There's one person I remember who I used to correspond with when she was on the forum, and it happened to her with a credit union.

There is this thread:
Wells Fargo froze my account
http://www.bkforum.com/showthread.ph...uptcy+accounts

and this one:
"Pledging Accounts" of Bankruptcy Debtors
http://www.bkforum.com/showthread.ph...uptcy+accounts

Credit Unions are also notorious for closing accounts after bankruptcy.