When your CC's are with your bank ??

[TheBrokeCouple]

Another question from "The Broke Couple "....

Our bank is Chase...two of our major debts are with them.
One is a credit card for 10k another for 9k.

We have stopped paying them.

Can they freeze our checking account & debit card because of this? We have direct deposit and pay our mortage, life insurance, etc through this account.

After reading some of the posts, we have considered changing my direct deposit to another bank, getting a new checking account, debit card and savings...then closing our chase account altogether to prevent monthly maintenance fees.

Any thoughts??

Thanks so much...You guys ROCK!

[6ftladycop]

Credit Cards With Bank

I just went through this a couple of months ago. A lot of people here tried to assist me, but the problem was, nobody had gone through what I had gone through so there were no straight answers. Here is what happen to me:

I had a 3000.00 credit card with my bank.
I had a 5000.00 loan with my bank.

When I filed BK, the automatic stay went into affect and receipt of the bankruptcy notice of filing was sent to my bank and they had it within two weeks. The bank would take an automatic payment from my checking account for the credit cards and the loan every month. When I filed, since I could not get a straight answer on the site about filing against a place where you have credit and loans, I was lost and did not know what to do, so I did not do anything and neither did the bank or so I thought.

I must be honest and tell you that I asked my lawyer if I could pick and chose who I would file against and I was told that I did not get to do that and that the bank even though I had accounts with them would have to be included. When I finally got used to the idea of filing against them, since the payments they deducted were almost 300.00, I was actually looking forward to keeping that money once I got comfortable with what I had done, however the deductions kept on coming out. It was almost as if they ignored the automatic stay. Since the deductions were automatic, I could not stop them without having to go back to court and challenge them. I contacted the lawyer again and was told that they must adhere to the automatic stay(yeah..right), those people kept right on getting their payments from me through automatic deductions.

Then about a month ago, I got a call from the bank telling me that since I filed bankruptcy, I would have to tell them what my intentions were as far as their loan they gave me and the credit card. They basically wanted to know if I intended to go through with all of this or not. I could not make my answer come out right then and there so I told them I needed more time to think. Well they gave me one day and I went to withdraw money out of my savings account and it was denied, I went to pay some bills online and it was denied, I went to the bank with my cash station card and tried to withdraw money and it was denied and the icing on the cake, I called the bank because I had direct deposit from my job to the bank for my paycheck and could not get money on pay day.

They had me by the throat and would not let go until I agreed to sign a paper saying that I would re-affirm the loan and the credit card....can you imagine that. To this day, I never received any paperwork saying anything like that, but once I agreed, all of a sudden my cash station card was working, my checking account was avaliable, my paycheck from the bank was avaliable, and that basically was the end. I,m still making those payments to this day and some of it is almost paid off, but It was a nightmare.

[nc73]

Glad I moved my money. The new bank sucks so gotta find another..

[danaf]

if you have credit cards with them, they won't let you close your accounts.

BUT - YES - if you are intending to file bk, take out almost all of your money, stop your direct deposits, and find another bank asap.

[nc73]

if you have credit cards with them, they won't let you close your accounts.

BUT - YES - if you are intending to file bk, take out almost all of your money, stop your direct deposits, and find another bank asap.

Why stop direct deposits?? Couldn't I start it up at the new bank?

[6ftladycop]

If you file against them and you have an account that is used for the direct deposit, believe me from experience, they are going to freeze that account. They will get their money one way or another, and its not so easy to close an account when you are in the throws of bankruptcy especially if the credit and loans are with the bank you are filing against. Do not be fooled. For example: Your bank is 1st National. You have a credit card with them, you have a loan with them and lets throw this in for good measure, you have a car loan with them as well. The minute they are informed that you are going to file against them, how in the world are you going to be able to close and account and take all the money out when the bank you are with gets the notice that you filed. Most of the time they start doing something immediately.

[lostinmich]

Yes, I'm sure they meant just to stop the direct deposits at Chase. For me, I opened up a new checking and savings account at a local credit union, changed my direct deposit, and one month later I filed. No problems.

[TheBrokeCouple]

Great...I will change my direct deposit for my work to a new bank or credit union...and change over our automatic withdrawls...just as if we were changing banks.

If we get fees assessed to our account for no balance, or negative balance due to fees...then we can just claim that in our ch7. Right?

Thanks so much for your replies.

TheBrokeCouple

[JollyGG]

If you file against them and you have an account that is used for the direct deposit, believe me from experience, they are going to freeze that account. They will get their money one way or another, and its not so easy to close an account when you are in the throws of bankruptcy especially if the credit and loans are with the bank you are filing against. Do not be fooled. For example: Your bank is 1st National. You have a credit card with them, you have a loan with them and lets throw this in for good measure, you have a car loan with them as well. The minute they are informed that you are going to file against them, how in the world are you going to be able to close and account and take all the money out when the bank you are with gets the notice that you filed. Most of the time they start doing something immediately.

I still say, now that you have access to your money again you should open a new account at a different bank, put all you money there. Redirect your direct deposit to the new bank and recind your reafirmation agreement with the old bank. You have a generous window to recind any reafirmation agreements.

[JollyGG]

Another question from "The Broke Couple "....

Our bank is Chase...two of our major debts are with them.
One is a credit card for 10k another for 9k.

We have stopped paying them.

Can they freeze our checking account & debit card because of this? We have direct deposit and pay our mortage, life insurance, etc through this account.

After reading some of the posts, we have considered changing my direct deposit to another bank, getting a new checking account, debit card and savings...then closing our chase account altogether to prevent monthly maintenance fees.

Any thoughts??

Thanks so much...You guys ROCK!

Major banks don't have as big a problem with this as smaller local banks and credit unions. I bked several accounts at the bank I continue to use, but it is a large national bank.

However, to be on the safe side it wouldn't hurt to open an account at a different bank and redirect you deposit there, at least until you get a feel for what your bank will or won't do after you file.