Bank Account After Discharge

[Cali]

We BKed 2 CCs with a bank that we never closed our account with and still get bank statements from. We changed our direct deposit to a local CU, while the process of BK was going on.

I wanted to know if we could start using the bank again since we are discharged(not closed yet), does anyone know?

TIA!

[soleprop]

well, the way i see it is this: the debts were discharged in bk and the creditors of those debts can never attempt to collect them ever again. so you should be safe using the account; any action the CU would take against your funds to apply against your discharged debts would be illegal.

if they didn't close the account, then you're free to use it according to the terms of agreement you signed when you opened it, at least that's my understanding.

[Cali]

soleprop - the CU wasn't included in BK, so it's fine. It's the bank I am wondering about.

[soleprop]

oh well then yeah - you'll have no probs.

[magyar123]

I would be leary of re-opening any accounts with a bank that you previously included in bankruptcy. A bank, any bank has a long memory of people filing against them in the past. Stick/stay with the credit union.

[Cali]

I guess I wasn't clear in my other posts.

The account was never closed, and still has a small amount of money in it. So this wouldn't be a re-open.
We also have our insurance through the bank.

A bank could come after discharged debt?

I would be leary of re-opening any accounts with a bank that you previously included in bankruptcy. A bank, any bank has a long memory of people filing against them in the past. Stick/stay with the credit union.

[tunskit]

The bank can't really come after it, legally, but that doesn't mean there won't be an "oops" in the collection department if they realize you're still using the account and had an outstanding balance on the CCs that were BK'd. They'd have to eventually return the funds if they seized any, but it could be a nightmare to sort out. If you use the account, it might be wise to keep only a small balance and either take out cash or use your debit card for any transactions. Don't have any checks out there floating, at least for the first few months of use. If they haven't done anything to you within the first few months, I doubt they ever will.

Or, you could call the bank itself and ask them if it's okay to still use the account since you filed on the CCs. I'd go this route, but I like to know what's happening and not have ambiguities. KWIM?

Good luck!