Bank Account was seized so...I'll be filing BK.

[intoday]

I think we're going to be forced to file for Bankruptcy. A judgement from about 3 years ago was pushed into my checking account yesterday. As of today, I'm NEGATIVE $13,000.

I don't see a way to get over this so I think we'll have to declare Ch. 13. I did the means test online and my family income is below the limits and we would qualify for Ch. 7. We only owe $50,000 on our home and similar homes are listed for $125,000 (and not as nice as ours so I'm sure we'd be appraised for more). I cannot lose my home so we're going to forced into Chapter 13.

When you do your lists of expenses for Chapter 13, can you use the IRS standards or must you prove each expense?

Also, is your monthly payment for Ch. 13 100% of your monthly disposable income?

Thanks for your help!

[spearmint]

I didn't think they could capture your account if there was nothing in it.

[intoday]

I have no idea.

The judgement is in my husband's name and the account is a joint account so I can't see how they can take all the comingled funds.

[StartingOver08]

Do you know what your exemptions are for BK? If not, check here for your states exemptions: www.legalconsumer.com

Some of the states allow federal exemptions, but you must compare to see what is more favorable to you.

Do you have an accurate idea of the value of your home? Todays market value is substantially less than what most people think it is because of the severe market turndown.

[EricaCallaha]

Your payment in theory is supposed to be 100% of your disposable income. But a good attorney will know the ins and outs with the trustee and what you can get away with in your budget. In our district we can have universal life insurance policies, satellite tv, internet, cell phones and dance class. Unless you want to go more than the IRS standards, you don't have to prove anything.

Interview lots of attorneys who give free consultations. You want a good attorney who you can work with and isn't afraid or irritated to answer your questions.

Good luck.

[AngelinaCatHub]

I cannot see how they can go 13K into a negative balance. I would discuss this with your bank right on. If you have 5 bucks in the bank and they take 10, you are left with negative 5? NO. This cannot be so. Please explain this as it just does not equate. Not to say, it didn't happen, but why? Info please. 'Hub

[PoorGrammyinBK7]

And we wonder how these banks could have gotten into trouble?

[intoday]

Good morning.

I spoke to the bank and they said when something like this goes through the account, it's with a court order. I presume that the judgement gave the law office the right to obtain a court order to freeze the account.

My husband spoke to the woman at the law office that's handling this and she said that no money can come out (i.e. the checks that I wrote prior to this will bounce) but all the direct deposits that are scheduled will be able to go in. Clever, huh?

We're headed to a different bank today to open a new account. Hopefully, we can file our paperwork before they discover that one. My husband's employer will only pay in direct deposit so we have no choice about getting another account for him.

[Gerry]

I think it's possible to direct deposit his checks into an account with only your name on it. All his employer needs is the routing and account numbers and his signature on the form. If the judgement is in his name only, they shouldn't be able to touch an account with only your name on it.

It's worth a phone call to the new bank, at least.

[StartingOver08]

Make sure you change banks! Make it a neutral bank where you have no credit.