Restricted access on my account?!

[Dilligaf]

I filed for bankruptcy and had my 341 meeting on September 10 of this year. I go online to my bank\credit union to see if a payment has cleared.

Guess what? They restricted my account. I can't check my balances, set up bill pay..NOTHING!
I had a personal loan and a credit card with them. Yes they were listed as a creditor in the bankruptcy.
I even used the automated phone system and got nowhere. I had signed up for e-statements a long time ago so the current state of my checking\savings account is questionable.
I don't know if the billpay appointments I had set up will be canceled.

I thought creditors were not allowed to take action against debtors after filing.
Especially after the 341 meeting.

I sent them a letter mentioning my bankruptcy and 341 meeting and I sent the lawyer's firm a letter mentioning it.

I don't know if they are going to take the money and apply it to the accounts.

I'm peeved though! I'm about ready to look up the address of the trustee of the 341 meeting and let her know what they are doing.

[WhatMoney]

What is the name of the bank or credit union that did this? Some banks do this as policy while some do not.

It is common and expected to lose access to any account that you defaulted on in your bankruptcy. If you had loan and credit card accounts with them and included them in your bankruptcy, absolutely they will close them and restrict your access. If you are talking about a checking account, they should have already frozen that using the offset and cross-collateralization clauses you agreed to when signing up for the accounts.

More information would be useful, but this sounds like normal banking practice to me.

[tobee43]

credit union appear more than most other banking institutions to do this. usually it's because you have either a loan or cc with them as well as you checking and savings. while you most likely listed perhaps let's say, a car loan that may not want to reaffirm, and or a cc that you listed with a balance you expect to be written off etc...c/u's grab what they can.

the old adage comes to place here....never go to the bathroom where you eat!

[tobee43]

credit union appear more than most other banking institutions to do this. usually it's because you have either a loan or cc with them as well as you checking and savings. while you most likely listed perhaps let's say, a car loan that may not want to reaffirm, and or a cc that you listed with a balance you expect to be written off etc...c/u's grab what they can.

the old adage comes to place here....never go to the bathroom where you eat!

[Freddy03]

This is why my attorney told me to open a new account with a bank I have had not other relationships with in the past.

[Floridagail]

I hope you did not keep much money in the account. They will keep the money unless you reaffirm your debit with them.
I have posted on this b4, this is very common. I included my 4000 loan 30 yr revolving acct, in my chptr 7, They Gtefcu stopped my debit card and tried to get me to keep paying my loan to get my debit card back. I had already moved my money to new bank acct as recommended by my attorney, but hoped to keep the credit union account since I had it for 40yrs. They got 5.00 of my money.

[Dilligaf]

It was Suncoast Schools Federal Credit Union. I'm paycheck to paycheck. I had $90 in checking with probably $5 bucks in savings.
Main reason why I am worried is because I had a big screw up with my student loan and defaulted. I set up a payment plan with the government to have debit payments.
The $52 payment comes out the 19th of every month. I had written a check to Walmart for either $25\$30 bucks.

I was never advised by my attorney to switch banks beforehand.

I don't expect to use the loan account nor the credit card but I thought my savings and checking account were safe.

Looks like I'm going to have to move my direct deposit to someone else.

I don't think I've used any credit cards in the last 3 or 4 years.

I've banked with them since I was a kid. I'm under 40 years old so naturally I can't remember anything about fine print .

My car loan is with another credit union and that debt was reaffirmed.

I honestly don't understand how if my debts are being forgiven, how they can snatch and run?

Checking and savings were never frozen.

I can't reaffirm the debt since we had the 341 meeting on 9-10 and they restricted access on 9-21. I'm guessing that is when my CC payment was due.

[Dilligaf]

More than 60 minutes has elapsed so can't edit

Sorry for the double post but I can only edit within 60 minutes. I was on the phone trying to get things figured out.

Update: Student loan payment did not come out. They said because I was in bankruptcy, I couldn't be in the rehab program. They knew about my impending bankruptcy and said it wouldn't be affected. Didn't try to get the student loan discharged because I was always told they are not eligible.
Attorney knew about the student loans. They won't take out the payment. Guess I will be going in default again on the same student loan even though I was making payments on time!
Called Suncoast and they said they sent a letter to my attorney on August 18th stating that since I was doing a bankruptcy, I had to close my account. Attorney never relayed that bit of info. Only told me that Cingular had made a voluntary petition but they didn't come to 341 meeting. No one came.
Anyway bottom line is that Suncoast said they were closing my account today. They were going to transfer everything to savings and I had to come pick up the money. My Walmart check cleared. It was only $18 bucks and not the $30 as I thought.

[Floridagail]

Sorry you got treated so shabby. You have a fresh start with the rest of us. I am doing just fine without the cu. Things will get better.

[mijd]

WhatMoney is correct. SCFCU is very slow. That maybe the reason your accounts weren't frozen when you filed. I talked with mine before I filed as I read online that CU's are more apt to close accts than banks. My CU told me as long as my bankruptcy didn't cost them money they would leave my accounts open. I didn't have any open loans or cc's with them. Something else that I was told, unlike banks CU's are member owned and not for profit. They are very strict with rules concerning members that cost them money.

[stormy]

I was allowed to keep my checking account with my credit union.
That's what their accounting department told me; that as long as I wasn't costing them money, I didn't have to move my account. They found out about the bankruptcy because one of the loans I had to claim was a joint loan held with my ex-husband; they told me no problem, he would be responsible for the loan and since they weren't losing any money they told me I could stay.

I thought for sure that they would make me leave.