Overdraft

[CATCHMEIFYOUCAN]

Hi, againnn

I have an overdraft from Chevy Chase, listed on my Bk13. They have sent me a letter twice giving me an alternative if I fail to comply (remit a payment) they will turn the account over to their attorneys for appropriate legal action (I'm assuming this is computer generated). Should I just call them (although it does mention in the Bk that I should have no contact with the creditors. I have been trying to reach my lawyer via email since my court date to confirm a plan last wednesday to no avail, maybe I should just try and call him (but I usually get his paralegals (who are pretty good gals). Can this creditor sue my since I've already filed?

Thanks for any input, Catchmeifyoucan

[lrprn]

Hi, againnn

I have an overdraft from Chevy Chase, listed on my Bk13. They have sent me a letter twice giving me an alternative if I fail to comply (remit a payment) they will turn the account over to their attorneys for appropriate legal action (I'm assuming this is computer generated). Should I just call them (although it does mention in the Bk that I should have no contact with the creditors. I have been trying to reach my lawyer via email since my court date to confirm a plan last wednesday to no avail, maybe I should just try and call him (but I usually get his paralegals (who are pretty good gals). Can this creditor sue my since I've already filed?

Thanks for any input, Catchmeifyoucan

By "overdraft", do you mean overdraft protection on your Chevy Chase checking account?

If yes, then we have the same overdraft protection 'loan' included in our Ch 13 too. Since an overdraft protection 'loan' is unsecured, it can be wiped out in bk. And since you've already filed, your bank can't do a thing about it. The very fact they have contacted you is a violation of the automatic stay. DO NOT contact this creditor yourself - keep after your lawyer to find out what he/she advises. If email doesn't work, I'd try an old-fashioned, quaint, but effective contact method - use the telephone to call your lawyer's office . Hope you get an answer soon! Keep us posted, ok?

[CATCHMEIFYOUCAN]

By "overdraft", do you mean overdraft protection on your Chevy Chase checking account?

YES !

The very fact they have contacted you is a violation of the automatic stay.

Even it is by letter ???

What I did, I had stopped using my accounts I had credit cards tied and loans, and Chevy Chase Checking gave me "overdraft," protection .. I was paying on the overdraft just before I filed, but I didn't want to me charged on my checking anymore, so they changed my checking to a student checking account so I wouldn't get that ridiculous surcharge for having a checking account I stopped using.
Since the day I filed I stopped paying on the account since I included them in my Bk, and it only started being "overdue," after I filed. I think it is computer generated and it would be a big mistake on their part if they pursue this since I'm already filed. I will try and verbally speak to my lawyer or his parallegals.

I will give my lawyer a call tomorrow, as I have to decide if I'm going to quit one job before another plan gets submitted or just submit another plan. At the same time I think I should be paying something back for a little while, so at least it shows an effort on my part I'm being honest in wanting to pay the creditors back.

Thanks again, Catchmeifyoucan

[lrprn]

[The very fact they have contacted you is a violation of the automatic stay.

Even it is by letter ???

Yes, ANY contact of any kind by a creditor listed on your creditor list after you file is a violation.

Sometimes it takes up to a month for your bk filing to make it through all the bank's departments to shut off any auto-letters, calls, etc., so if it's only been a few weeks, sit tight. Do let your lawyer know for sure so he/she can follow up immediately with the bank by sending an official "violation of stay" to the bank to stop the letters.

[CATCHMEIFYOUCAN]

Thank You !

Thank You !

It's been more than a month, I officially filed end of July, but my 341 was end of August and an additional court date end of September (still no confirmation of a payment plan). So I don't know what counts? Thanks again !

Catchmeifyoucan

[CATCHMEIFYOUCAN]

Criminal Event

I asked the same question on a different site and someone wrote:

In some circumstances an overdraft is a criminal event--and Ch 13 does not cover you for criminal events. It would seem to me the bank can pursue any appropriate criminal action for a bounced check.

Could this be true even though, I never bounced a check with my overdraft protection, I had access to it and was able to withdraw cash from it as well!
Now I'm kind of scared!

Catchmeifyoucan

[BassBoy]

Well, I could see if the overdraft was for hundreds, maybe thousands. That could construed as attempting to pay for something without any available funds. I mean, you'd have to abusing it. On the other hand, if you screwed up and bounced a check at the grocery store, I highly doubt that would be considered criminal.

If you never bounced a check, then do not be worried.

[CATCHMEIFYOUCAN]

Hmmm

My overdraft limit was up to $500. I paid every month on it up to the day I filed - never bounced a check. I kind of felt silly to list them on the Bk, but you have to list everything. So, yeah, maybe I shouldn't be too worried about it. That other site I visit now and than, they are mean and and seem unforgiving. I had a posting here in the wee hours of the night about it but I guess it wasn't allowed. Ok, I'm still trying to contact my lawyer to no avail.

Thanks B-Boy !

Catchmeifyoucan

[lrprn]

Well, I could see if the overdraft was for hundreds, maybe thousands. That could construed as attempting to pay for something without any available funds. I mean, you'd have to abusing it. On the other hand, if you screwed up and bounced a check at the grocery store, I highly doubt that would be considered criminal.

If you never bounced a check, then do not be worried.

We had been with our local bank for almost 20 years - they allowed us an overdraft protection of $3,500 and my husband kept using it like a temporary "loan" every month for over a year trying to keep us afloat. When we filed, the whole $3,500 was listed on our forms as an unsecured debt. We also have our second mortgage with this bank, and they have filed to be included in our Ch 13 plan for both debts. We never bounced a check, and our bank has not threatened any legal action against us regarding the overdraft debt because it woudn't do any good. They will get the full amount owed for our second mortgage but will only get a % of the $3500 back through our Ch 13 payments.

[CATCHMEIFYOUCAN]

Percentage

but will only get a % of the $3500 back through our Ch 13 payments.

When I went on pacer, it actually list who gets what as far as percentages, and so far only the lawyer and my car (which I pay outside the Bk) will get 100% back. The rest of the creditors listed, including that overdraft get a percentage split amongst them. Pacer is pretty cool!

Catchmeifyoucan