I was wondering if my bank will cancel my account once they find out we have filed for Ch 7. Can they do that?
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Do you lose bank accounts when you file Ch 7?
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dang, another good question. in for this read as well.Filed 7/28/08, Discharged 10/29/08
(filed pro se: nonconsumer no asset CH7)
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Originally posted by downwardspiral View PostI was wondering if my bank will cancel my account once they find out we have filed for Ch 7. Can they do that?
I assume you are talking about a checking account that you are not in default on and with an institution that you do not have any other financial obligations to?
If so, no...you probably won't lose your account. If you have any obligations to this bank that you are going to be defaulting on, you need to run, not walk, to another bank and open an account BEFORE the you make the S hit the fan. If this means changing your direct deposit, do it now.
Furthermore, if you do have checking obligations to this bank that you default on, you will have a very hard time opening another bank account. So, again, if you are going to need to open another checking account, do it NOW.
ep
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As ephiphany says depends on your circumstance.
1. If you have a loan or other debt at the bank that you plan to discharge during the course of the bankruptcy then you would be well advised to move the account to another bank or institution where you have no such obligation. The reason is that most cross collateralization clauses would allow the bank to seize the account for other default accounts.
2. If you have no other debt or obligation with the bank then you should be okay.May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed.
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You've gotten sound advice about keeping your account after filing from EP and JR.
One other thing to keep in mind is how much cash you have in your accounts. If your state exemptions can't protect all the cash when you file, then you need to start spending the account down to what can be protected.
Most lawyers advise spending the money on normal living expenses that you've been putting off (car repairs, clothing, health insurance, etc) before filing. Just keep all the receipts in case there are any questions about where the money went later.
Your lawyer can help you sort this out - he/she will be aware of what's ok to do in your local court and what isn't. Good luck!Last edited by lrprn; 04-29-2008, 08:36 PM.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go
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Originally posted by downwardspiral View PostI was wondering if my bank will cancel my account once they find out we have filed for Ch 7. Can they do that?
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Our bank accounts are fine, no negative balances or anything like that. We do have a credit card with each bankwe have that will be included in the Ch 7 filing. So yesterday we opened a new account with a bank we have no relationship with.8/5/08 - Filed Chapter 7
9/10/08 - 341 Meeting - It went great
11/10/08 - Last day for Objections
11/12/08 - Discharged & Closed!
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Why do they recommend closing credit union accts?
We are filling out paperwork and it says in bold print that they strongly recommend closing any CU accts before you file. If we don't have any cc or line of credit with them, why would we need to do this? All we have is a checking account with a debit card there.
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I thought this was interesting to read....
We are the same as Brisco...
We have a US Bank checking account along with 2 of their credit cards PLUS a checking account advance with them....we listed all 3 in our bankruptcy.....
Of course, before we filed, we went to a cu and opened up a new checking account....
It's been over a month since we've filed and US Bank still has our checking account listed as open. They haven't closed it, which doesn't bother me...Our stimulus is being direct deposited into that account...
Once it's deposited it's getting closed.Filed Chapter 7: 3-22-08
341 Meeting: 5-15-08 It went great!!!
Last day for objections: 7-14-08
Discharged and Closed: 7-21-08
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That doesn't make sense.
My paperwork doesn't say that at all. My attorney said not to close bank accounts but to make sure you transfer your direct deposit to another bank and leave as little as possible in the one you aren't using anymore.
Originally posted by twinsplus14me View PostWe are filling out paperwork and it says in bold print that they strongly recommend closing any CU accts before you file. If we don't have any cc or line of credit with them, why would we need to do this? All we have is a checking account with a debit card there.
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Have a small balance on the closed accounts? or the new one?
Originally posted by Christinajp View PostWhen I spoke to our lawyer yesterday, we suggested opening new ones at another bank, and closing the ones we have now, then to list those account also, but to say closed, and also to have a small balance of course etc.
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