Freeze checking accounts?

[erinmi]

I've read a couple places (not sure if it was here or other sites *lol*) that if you have an unsecured debt included in a BK at a bank, if you also have a checking account there, they could freeze the account?

Right now we have a checking account with a linked overdraft LOC at a credit union. We are planning on including that overdraft in our BK. We really need the money in that account to be available because we have several direct withdrawals plus outstanding checks (like our rent and child care payments).

We do have another open checking account that we never use at a different bank but I have no checks for that account and I know it takes like a month for our direct withdrawals to be updated.

Thanks- you have all been very helpful!

[gophermn]

I just went through this - like 1 month ago. According to my attorney if you do owe things like credit cards - line of credit - etc, the bank can freeze your accounts. Hence deposit money but no withdrawls.
I was told to open another bank acct ASAP and begin transfering $$ right away. It does take time to do electronic deposits but at least they will cut you a check inbetween.
You might want to look into credit unions as well. But nonetheless, get it done now!!
Terry

[magyar123]

Credit unions have the right to legally steal your funds - it's called cross-collaterization, if you file on any of their products, loa, cc, whatever.
If you intend on filing/including them in your petition, make sure that all the checks that you wrote and withdrawals have cleared. Once they cleared you can then close the account, or just leave $5 in there.
At the time you close that account go to your other bank and set up a checking account and start over.

[rrockinggramma]

run don't walk to another cr union asap. They are nasty in bk

[sf2007]

I'm in the same situation but with BofA. I have 3 credit cards with them and checking account.
My questions are:
1. Can they take money from my checking account if I'm late with my payments on credit cards?
2. Can they take money from my checking account if I'm filing for BK?

Thanks

[magyar123]

For some odd reason only credit unions are allowed to collaterize - that is robbing you of any funds that you have with them. To my knowledge regular banks don't fo that. They have to have judgment to get to your funds.

[FreshLikeADaisy]

Once they cleared you can then close the account, or just leave $5 in there.

I had a friend who made a one time payment to Sears over the phone from a specific bank account. Several years later, they were a few weeks late to Sears with a payment, and Sears yanked that money right out of the account, just in time to bounce the rent check. The previous one-time authorization was given as justification by the customer service rep. Now that so many banks have gone to paying the overdraft so that they can charge you all the fat fees that go with it, I can only imagine what charges would have been racked up if the account had been left open with $5 in it.

I say go ahead and close it -- if another creditor were to try to make an unauthorized withdrawal you'd have to pay the overdraft charges before you could close it, but if the account is already closed you're off the hook no matter what.

[magyar123]

I had a friend who made a one time payment to Sears over the phone from a specific bank account. Several years later, they were a few weeks late to Sears with a payment, and Sears yanked that money right out of the account, just in time to bounce the rent check. The previous one-time authorization was given as justification by the customer service rep. Now that so many banks have gone to paying the overdraft so that they can charge you all the fat fees that go with it, I can only imagine what charges would have been racked up if the account had been left open with $5 in it.

I say go ahead and close it -- if another creditor were to try to make an unauthorized withdrawal you'd have to pay the overdraft charges before you could close it, but if the account is already closed you're off the hook no matter what.

I hope that this will be a lesson for everyone: NEVER!!! make a phone payment - because once you do they will store your account information in their data base..
If they hassle you with the crap that the payment "has to be received today", stallthem. Tell them that your husband/wife has the checkbook ,that you don't have any checks on you and don't know your banking info data ABA/transit # or your account #.
To further stall them tell them that your husband/wife is out of town, but that you will get a money order and pay.