Bank Account/Saving

[BKKimOK]

I’ve ran into another small hurdle that I’m trying to figure out. I had a loan through my bank, so prior to filing, I opened an account with another bank in the event my other account was frozen. Since my deduction was coming via my payroll, I didn’t think this new bank would find out and I would be able to have the account. I didn’t hide this from anyone, the trustee was aware. Well, both banks were sent a letter saying I was in chapter 13 and to not allow me to have overdraft, so the cats out of the bag.

Fast forward, the old account has indeed been frozen and my new bank said they won’t close the account, but they must cancel my debit card for the duration of my bankruptcy. I’ve been told having a bank account is a privilege, which I am completely understanding and grateful I suppose, that I have an account still. Paying bills with only checks is okay, though taking some getting used to, as not everyone accepts checks.

I guess my question is, can I get a pre-paid card and put money on for monthly spending? Does the trustee want to see our bank account statements often? I want to try to put as much money as I can away in an envelope in case I need it down the line. I just don’t know if random withdrawals will look weird. I want to do cash stuffing in a budget binder with every bit I have left, while I can.

I’m probably too concerned with this budget and trying to have proof of every penny I spend in case I’m asked, but I’m not sure if that is or will ever really be necessary.

[justbroke]

The Chapter 13 Trustee doesn't care about your day-to-day spending and mine (two of them) have never once asked to see my bank statements, ever. I have never heard of a bank, other than one at which you had either credit or overdraft protection tied to a checking account, cancel a debit card. You may be able to find a bank, perhaps a credit union that only uses ChexSystems, to join and allow a debit card. I don't like the hassle of third-party prepaid cards although I did use AMEX Serve for a small duration of my Chapter 13.

A Chapter 13 is pretty much just making your plan payment each month. If you have payroll deduction -- a wage deduction order (WDO) -- then the Trustee gets the payment automatically. The Trustee doesn't care what you do outside keeping your head down and making your payments. (Of course you must pay your taxes on time and not incur new debt unless a.) allowed by your plan, and/or b.) with permission of the Trustee or the court.)

[Carmella]

I would look for another bank that allows a debit card. We used two banks before BK13 and both had debit cards that we kept through the BK. One is USBank if they are in your state. The other bank is local and in one other state so I won't name it. And we had TWO Credit Cards which went into BK with USBank and they still let us keep the debit card.

I feel like it would be very difficult not to have a Debit Card in this day and age. Getting cash through the ATM or when using the debit card at the grocery store is how we get cash, it's not so easy to go in person to the bank for cash.

By a prepaid card do you mean the Gift Cards that have Visa or Mastercard? I don't see why you couldn't do that, but they do charge a service charge and not every place will accept them.

Is your bank allowing you online access? My banks allowed online access, but cut off my ability to see my mortgage and HELOC or to pay them online. I had to call the BK department of the bank to pay the mortgage and HELOC which was a real hassle. I could have gone in person, but it was difficult with my work schedule, but it could have done--phone was easier.

The car loan, Ally, also cut off my ability to pay through their app or online. And they didn't send bills anymore (neither did the bank) initially then at one point I got access back and Ally let me go online with a disclaimer "this is not an attempt to collect a debt; we can remove access at any time." There was a loophole to use a third party to pay online to make the car payment, so I did that since many times I was paying it on my payday last minute whereas sending a check you got to have the money in the bank when they cash it. Plus there's rules for sending checks when they have to be received. If the mail runs late you are late on a payment and running late might be delivering it after 1 p.m. on the day it's due.

When our BK started, I had no knowledge that the Bank and the Car Loan would stop sending bills and online payments. It made it a tad tougher to pay. I think if they can allow it with a disclaimer, it definitely helps us make sure the payment is getting to them timely.

[flashoflight]

We had to submit bank statements at filing. Any bank that knew about my bankruptcy cut off access to overdraft protection. That's pretty much it. Debit cards remained intact. I didn't list every bank account just like I didn't count the change in between my sofa cushions. I used overdraft a lot prior to bankruptcy but not once since filing.

[mh321]

I would advise finding another bank, but I wonder if this is a habit of the Trustee to send letters like that to any bank you have an account with? That's really a bit extreme for them to do.

[Carmella]

I would advise finding another bank, but I wonder if this is a habit of the Trustee to send letters like that to any bank you have an account with? That's really a bit extreme for them to do.

I think they notify everyone you are currently involved with for anything financial, loans, credit cards, cosigners on loans and banks.