CC and Checking at same bank

[MixerDriver08]

Hi Guys....I really love the search feature but unfortunatly I think my head just exploded from pouring over it... Let me get this right say the bank I do business with is BofA. I have my Checking acct there and a CC through them that I am including in BK. I am still current on that card as in not late. When I file they can't touch the money in my checking acct right and if the cc is discharged they still can't touch my checking acct correct, because then they would be collecting on a discharged debt. The way I understand it is if I hadn't filed yet and was say 60 days past due they could then take money to bring the acct current only, right. I think that sounded right. We have 2 checking accts with 2 different banks so I just wanted to avoid switching direct deposits if at all possible, but also would hate to file petition and then find out BofA decided to pay my cc acct off with my checking acct.

HT

PS Wife and I go to Credit Counseling Class Thursday And hope to review our petition and sign next week. Fingers are crossed and Stressed to the max

[AngelinaCatHub]

You best move your money out of your checking account. YES they can. 'Hub

[liz417]

I would find out if they "cross-collateral". CU are notorious for this, but I don't know if BofA does this. Call them and ask! Also, look up a LAJAZZ, sorry, I don't remember if she had BofA and $$ was taken out recently.

[justbroke]

Absolutely MOVE THE MONEY. Bank of America loves to use their Right of Setoff when it comes to Credit Cards. They even loved to pay my business account credit card, by just taking money out of my personal checking account, whenever they wanted.

Get your money out of that Bank especially if you're about to default on your Credit Card or have business debt at the Bank!!!

They can set-off the entire credit card. Generally, however, they just pull enough to keep it current. If they charge the credit card off, after 90 days, then they'll try to collect the whole thing. Don't ask me how I know. I don't want to remember! (Bank of America was the only Bank to freeze all my accounts and drain one checking account... two days after payday... one day after filing Bankruptcy!!!)

[liz417]

Absolutely MOVE THE MONEY. Bank of America loves to use their Right of Setoff when it comes to Credit Cards. They even loved to pay my business account credit card, by just taking money out of my personal checking account, whenever they wanted.

Get your money out of that Bank especially if you're about to default on your Credit Card or have business debt at the Bank!!!

They can set-off the entire credit card. Generally, however, they just pull enough to keep it current. If they charge the credit card off, after 90 days, then they'll try to collect the whole thing. Don't ask me how I know. I don't want to remember! (Bank of America was the only Bank to freeze all my accounts and drain one checking account... two days after payday... one day after filing Bankruptcy!!!)

Oh!!! Thanks for the info. Can BofA take $$ AFTER you file BK?

[MixerDriver08]

That's what I was getting at I am current on my CC with them and the next payment is due mid november sometime We will be filing literally next week so the stay would go into affect before credit card came due again.

[hnhlvr]

Why would you keep your BOA account when there are numerous other banks out there you can deposit your money into? I cannot imagine risking loosing your money over the hassle of changing your direct deposits!

[MixerDriver08]

Yeah your right Wife and I were just talking about that We are just going to switch it over to our other checking acct.

[justbroke]

Oh!!! Thanks for the info. Can BofA take $$ AFTER you file BK?

Yes, that's exactly what they did.

[AngelinaCat]

Make sure you put that money in a bank with which you have NO CC affiliation--or any other loan for that matter.

For more horror stories on cross-collateralization and Right of Offset,see Lajazz947's experience:

http://www.bkforum.com/showthread.php?t=26141

[Doghouse]

I just opened an account at a new bank and would be switching my direct deposit and auto pays as soon as possible even though I don't plan on filing till Jan or Feb '09. This is because starting this month I will stop paying the CC and mortgage and the CC's and mortgage are with the bank and credit union I use for my checking and savings.

I saw an attorney today on the free initial consult and asked that question. She said they can't touch your money usually on a personal acct but they may on a business account. She also said they can freeze your account once they know of the BK filing to prevent a bunch of fraudulent checks from possibly coming in.

Anyway, not taking any chances. I opened a chk/sav at a new bank last weekend.

[Cali]

After you file they aren't allowed to touch your money. If they do, they will have to return it to you.

Some banks will close the account or restrict your access.

I have a bank account I included in BK(2 cards), it is still open and money still in it. We still have access to the account.

[hnhlvr]

I just opened an account at a new bank and would be switching my direct deposit and auto pays as soon as possible even though I don't plan on filing till Jan or Feb '09. This is because starting this month I will stop paying the CC and mortgage and the CC's and mortgage are with the bank and credit union I use for my checking and savings.
.

Good planning.

It's always a good idea to open a new account at a different bank before quiting payments on CCs and mortgages. After missing only one or two mortgage payments, DH and I opened a new checking and the bank almost didn't issue him a DEBIT card due to his newly aquired lower credit score.

Even if a person's money is safe, one should always have a back up account AHEAD of time before his/her credit score goes down just to be sure you can get an account.

Dh and I never even bounced checks, so some banks are very picky over credit scores!