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**treehugger1** · 03-14-2007, 10:13 AM

When I was seeking initial consultaions from attorneys, I got the impression that the trustee in this district wouldn't care about a savings account as long as the plan payments were being made on time, and income did not increase more than 10 - 12 %. However, since technically all "disposable" income is supposed to go to the plan, I might be a bit nervous about building a large savings account. Perhaps others who are into their 13 can offer some thoughts.

**quietsound** · 03-14-2007, 10:25 AM

I'm basically talking about the items that were bugeted for....like: repairs to home, car repairs, medical and dental expenses, flood insurance, personal proerpty taxes,............i'm alotted a certain amount each month for those things plus the car insurance and i want to know if i can put the amounts for those things in a savings account so i don't SPEND the money on something else so that when an emergency comes up i have the money to deal with the problem.

**$$only4ever** · 03-14-2007, 11:13 AM

A regular savings account is ok while you are in bankruptcy. It is even better if you can prove that you are putting money aside for expenses that you know you will have.

**lrprn** · 03-14-2007, 01:45 PM

I asked our Ch 13 lawyer if it was ok to open a new savings account at our bank to deposit the part of our 2006 tax refund that will be ours to keep after our trustee takes his half. Our lawyer said that would be fine.

By doing without, we also managed to scrape together $500 to use for emergencies over the last nine months, so I asked our lawyer if our trustee could take that money if we put it in the same savings account. Our lawyer's response was (and I quote) "We are under no duty to disclose to the Trustee the source of other funds in the same account."

**quietsound** · 03-14-2007, 02:21 PM

are you guys ready for this one???? your gonna love it. I tried to open a savings acct. simple regular savings acct with the bank we have our checking account with for 20 years!!! 20 YEARS! would you believe they turned us DOWN to open a savings account. I was furious. do you know why?????? THEY say, it's due to low credit score!!

You mean to tell me, that all the people who declare bankruptcy have wonderful credit scores ..........give me a break! 20 years with the same bank, no bounced checks ever....no problems with them ever and because our credit score is not above a certain amount we can't open an account?

can someone please tell me how this makes sense. sounds like a law suit waiting to happen.

**CATCHMEIFYOUCAN** · 03-14-2007, 02:32 PM

I was with Navy Federal, and they blocked me from accessing my account soon after I filed. I had to leave a minimum of $5 in their savings account as they would not completely close my account because I had their credit cards and a loan tied to the account. I just got a letter in the other day saying that they were charging me $3 because my account has been inactive for 6 months which is about how long my bankruptcy process took. I wrote back and said how can you charge me if you haven't allowed me to access my account! Doesn't make sense, meanwhile they were still sending me monthly statements while in the process of Bk which I know is a violation of the automatic stay!

CMIYC

**treehugger1** · 03-14-2007, 02:44 PM

Hmm... Is there any reason one could not simply purchase US savings bonds?

**aa06a47** · 03-14-2007, 04:08 PM

I purchase 1 savings bond each month through payroll deduction ($100 denomination which cost $50). Only draw back I see is that money is not readily available as a savings bond takes 1 year before you can even cash it in.

I really don't think there is a problem with saving money while in a chapter 13.....except perhaps the problem of having the money to save.

Your "budget" has already been approved by the court, and the court and creditors have agreed that all disposible income is being paid. (creditors not so much so, but they had the opportunity to review the case and challenge it). If you have some left over, it is only prudent to save it. The way I see it, the court said your allowed to spend so much on such and such, but if you chose to not spend it on that, it is still yours to keep.

I have found it difficult to save much before something comes along to wipe it out. Just thankful that I was able to save one month for something that hits the next month.

**aa06a47** · 03-14-2007, 04:10 PM

Originally posted by CATCHMEIFYOUCAN View Post

I was with Navy Federal, and they blocked me from accessing my account soon after I filed. I had to leave a minimum of $5 in their savings account as they would not completely close my account because I had their credit cards and a loan tied to the account. I just got a letter in the other day saying that they were charging me $3 because my account has been inactive for 6 months which is about how long my bankruptcy process took. I wrote back and said how can you charge me if you haven't allowed me to access my account! Doesn't make sense, meanwhile they were still sending me monthly statements while in the process of Bk which I know is a violation of the automatic stay!

CMIYC

That bites the big one. Do you still have the credit card / loan or did those get erased in the bk?

**aa06a47** · 03-14-2007, 04:13 PM

Originally posted by quietsound View Post

are you guys ready for this one???? your gonna love it. I tried to open a savings acct. simple regular savings acct with the bank we have our checking account with for 20 years!!! 20 YEARS! would you believe they turned us DOWN to open a savings account. I was furious. do you know why?????? THEY say, it's due to low credit score!!

You mean to tell me, that all the people who declare bankruptcy have wonderful credit scores ..........give me a break! 20 years with the same bank, no bounced checks ever....no problems with them ever and because our credit score is not above a certain amount we can't open an account?

can someone please tell me how this makes sense. sounds like a law suit waiting to happen.

Did you happen to declare bk on this particular bank? I filed bk on Bank of America (since they bought MBNA, I socked it to them for about 70K). When I went to close my account, they tried to get me to stay with them and even sent me a couple letters later asking me to open an account back with them)....guess they were making too much money on me for low balance fees.

**quietsound** · 03-14-2007, 04:41 PM

yes they were one of the creditors but in the plan they get paid back at 100% so i don't know why they should care one way or the other. they are getting their money. and yes that's who i bank with for 20 years

**gunsmoke** · 03-14-2007, 07:24 PM

It depends on your trustee. Some care about saving accounts and what you put in them , others don't. Find out from your attorney to be sure. I wouldn't take any chances. The difference in trustee from one bankruptcy district to another is amazing.

**CATCHMEIFYOUCAN** · 03-14-2007, 08:02 PM

Aa06

That bites the big one. Do you still have the credit card / loan or did those get erased in the bk?

Erased in Bk .. THANK GOODNESS all unsecured even the loan was unsecured ! ! ! I really thought I had it in for myself as I had 2 credit cards from them of $10,000 limits, one VI and one MC (the MC I had just received about Mar/Apr and the did a transfer of the whole limit to this other credit card I had at another credit union in NJ (they considered the transfer a cash advance.) Well I went "partying," in APRIL and blew about $6000 in cash advances between Atlantic City and Dover Casinos. I filed in JULY! Talk about playing with fire, but I filed Ch13 so it looked like I was in a plan to pay them back. Come Oct I was able to convert to Ch7!

Best of Luck, CMIYC

**quietsound** · 03-15-2007, 03:17 AM

the lawyer probably won't answer me. he thinks i bother him too much as it is

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