freezing income/CD's...

[CurtInKS]

I was told by a co-worker that the day you file, your bank account is frozen. What exactly does that mean? She told me, when she and her husband filed, they did it the day before payday, so there was no money in the bank, and after that, her money was all hers. Is this how it works?


Also, I have 2 CD's, $2,000 apiece, for each of my daughters. They are in mine and their names. Will they take those, when I file?

Also, after I file bankruptcy, am I able to open a savings account, or will they simply take my savings?

[CurtInKS]

Anyone? Those CD's are coming up for changes, in a couple of weeks, and I want to know if I should just pull them or not.

[JRScott]

I've not got that far in the process yet. I sign next week.

My understanding is that the amount in your bank account is set at the time of filing. That is technically part of the bankruptcy estate. However they don't freeze the account I don't think. And you might have nothing taken out of it if the Trustee finds you a no asset case.

CDs I don't know, I'd ask your lawyer what to do about that, probably should ask them about the checking account to.

[NYCountry]

My accounts were not frozen.

[juststupid]

Umm our bank accounts were not frozen.

[brokeinmichigan]

Our bank accounts have not been frozen. We filed early April. If you are including in your bankruptcy any accts or loans that you have through your banking institution, that might be reason for them to "freeze" the acct. Also, if you owe and are including NSF, overdraft fees, etc...that might be reason for your bank to freeze your acct. But the BK court nor the trustee should have anything to do with your bank acct. Except they may ask to see current statements at your 341. We have been instructed to bring ours.

Good luck!

Hoping for brighter skies ahead...

[Bit_Image]

I heard in Kansas that the trustee can take funds in your bank account on the day you file. My wife was been through this before we were married. I dont know enough to be specific, but I was under the impression that you should remove all $ from you bank checking account when you file. However, I could be wrong.

[jal1129]

You will have to be able to exempt any money in your account on the day you file. If you are not able to exempt what you have in the account then the trustee will take it.

As far as the cd's I would discuss that with your lawyer. They may be okay if they are in your DD's names. If you close out the cd's close to filing (I think its within 1 year) you will have to disclose them, so I would'nt close anything.

I also would'nt suddenly withdraw any large amounts from your accounts just before filing, as you will have to show your bank statements and explain.

[CA3kids]

Our attorney said, regarding our 17 year old daughter's bank account (on which I am a cosigner) that since her SSN is on the account, the bank shouldn't be able to touch it. (We have ccs with our bank, and so have opened a new account at a credit union but have not closed our former bank account.) We might have her open a new account anyway at the credit union, as I would hate to have her lose her money from her part time job.

I assume that CD's have your ssn on them? And if you owe that bank money I'd be careful!

[lrprn]

I heard in Kansas that the trustee can take funds in your bank account on the day you file.

Not true. We filed Ch 13 in KS - our checking account (the only one we had when we filed) wasn't touched in any way. We did make sure that we had less than $200 in the account on our filing day.

[SinkingFast]

Generally where people get into trouble with their bank accts is 1 of 2 things.

Having way too much money in their acct that they cannot cover with an Exemption.

Or, having outstanding, Unsecured debt included in BK with the Bank/CU where there's a Cross Collateralization Clause on the Bank acct or in the CC acct "Terms of Service" agreement.

Our bank acct wasn't touched when we filed.

[CATCHMEIFYOUCAN]

I had 2 bank accounts with a 2 separate Credit Unions, I was denied access the second they found out I filed. I could not longer access my bank accounts via website, probably cuz my credit cards and loans were tied to the same bank.

I had an additional bank account with a local bank, and an overdraft of $500 I included on my BK. THAT was frozen too, as well as the credit cards I had tied with the local bank as well.

I WAS able to open a new account at a different local bank, I did this JUST BEFORE I filed. UNTOUCHED - thank goodness.

Best Wishes, CMIYC

[CurtInKS]

Thank you, everyone. My attorney indicated we should file, just before payday, so the amount will be low, but he's not sure on the CD's.

[JollyGG]

The CD's should be listed on your petition as Property held for another person - List all property owned by another person that the debtor holds or controls.

That could be all you need to do, or the trustee may ask for more information about those CD's. However odds are good that would be then end of things. But, you never really know. A lot may depend on how long they have had the CD's and exactly how the ownership of them is listed.

[CurtInKS]

I have another CD, I completely forgot about, for $9,000.00 that I used as security on my mortgage. It was left to me by my grandmother. I can't touch it. The bank indicated to me, they won't release to CD to me, until my mortgage is paid $9,000.00 under 80% of the appraised value. That's probably 1 year or so away. I assume since the bank won't release the CD, it's safe?