What should I do with BofA payment?

[katie]

We have a motor home financed with Bank of America and I scheduled the payment to come out of my checking account with Bank of America each month. Well it is time to stop paying the motor home loan since it will be included in out Chapter 7, but am having problems getting the payment stopped.

On the third attempt, I finally got someone who could put a "stop payment" on the payment for Friday, but not cancel the payment in the future. He said it was a contractural agreement between BofA and us. While I agree that the Loan was a contractural agreement the monthly payment transfer was not.

I have made changes to the loan payment in the past. In the beginning we always rounded up and paid more than minimum - then got really far ahead and didn't owe payments for several months. I then was able to stop payment and when we started owing a small payment again I set-up payment again for flat amount again, blah, blah, blah. My point being I have made changes and cancelled or delayed payment on the Loan account myself online. I do everything online - I hate discussing things on the phone.

Now, it is not letting me do that and the guy said it was an ACH debit that he can only put a one-time stop payment on. What am I missing? The ACH debit that is set up is not one that they set-up as it is not for the minimum payment on the loan.

Should I just call up the loan department and say we will be filing BK and to please stop payments on this account?

[Trixie007]

You need to open a new checking account and close that one out! I had to do that because of DirecTV and it took less than two weeks to have everything in the closed account cleared and closed out. Be sure you talk to someone at your local branch and let them know why you are closing the account. In our case, it wasn't enough to just have a low balance in the old account (say $5) - with our banking history, they would have continued to honor payments and then ding us with the NSF fees if we didn't close it completely!

[StartingOver08]

Close your account. If your bank account is in BOA - then find another NEUTRAL bank before you file. BOA has the right of 'set off' written into their agreement with you on the loan papers. In other words, they will take the funds out of your account to satisfy the debt.

Most loans have the same provision so you want to look for a bank that you do not owe money to - do this before the filing. In fact, do this right away.
There are several posters that have come on here and had money taken out of their account without their permission by BOA and other banks due to this right of set off.

[katie]

Thanks, Trixie. Yeah I thought about just keeping a low balance in there and letting it "bounce", but Bank of America would just let it go through.

Did they let you close out your account before or during your BK process? Did your trustee make a fuss over it?

We have another checking account at a different bank so I could just start sending direct deposit of paychecks over there. I am just so aggrevated! We also have another small checking and savings account with BofA - I guess I could close them all out together?

[StartingOver08]

Yes. The right of set off is for all of the accounts you have with BOA

[katie]

Thanks startingover - I'll try to go out at lunch today and take care of this. I guess I need to get something done before they realize we are filing.

[Trixie007]

Did they let you close out your account before or during your BK process? Did your trustee make a fuss over it?

I closed the account a few months ago and am not filing for a few more months so the Trustee didn't come into play. I had a personal relationship with the people at my bank - they were very understanding and sorry to see us go!

[freshstart10]

can banks still apply the right set off , after u file bankruptcy and after ur discharge?

[StartingOver08]

Not on the discharged debt.

[magyar123]

can banks still apply the right set off , after u file bankruptcy and after ur discharge?

No - otherwise they would violate the automatic stay provision of the bankruptcy law.

[jribe]

We have a motor home financed with Bank of America and I scheduled the payment to come out of my checking account with Bank of America each month. Well it is time to stop paying the motor home loan since it will be included in out Chapter 7, but am having problems getting the payment stopped.

On the third attempt, I finally got someone who could put a "stop payment" on the payment for Friday, but not cancel the payment in the future. He said it was a contractural agreement between BofA and us. While I agree that the Loan was a contractural agreement the monthly payment transfer was not.

I have made changes to the loan payment in the past. In the beginning we always rounded up and paid more than minimum - then got really far ahead and didn't owe payments for several months. I then was able to stop payment and when we started owing a small payment again I set-up payment again for flat amount again, blah, blah, blah. My point being I have made changes and cancelled or delayed payment on the Loan account myself online. I do everything online - I hate discussing things on the phone.

Now, it is not letting me do that and the guy said it was an ACH debit that he can only put a one-time stop payment on. What am I missing? The ACH debit that is set up is not one that they set-up as it is not for the minimum payment on the loan.

Should I just call up the loan department and say we will be filing BK and to please stop payments on this account?

I work at a large bank, like BOA. Basically any employee you talk to will not be overly helpful on stopping your payments for your loan. My advice would be to go to another bank- open up your account, get your debit cards pinned, and any direct deposits switched. Once you have the new account pretty much ready to go- close out the BOA account. Don't give them an explanation- they won't care. Just say you want to close out all your accounts. Then don't worry about it

[katie]

Thanks jribe! We have another checking account at a local bank so I'll let my boss know to switch over my direct deposit this week and we should be set.

[kenshirley]

Get out of B of A.
I had our RV financed there to and my attorney told me that once they sold it (we turned it in) that there was a big chance that they could take the money out of our accounts so we have changed banks and are pending chapter 7.
They can't take what is no longer there.

[katie]

Thanks, kenshirley, for the heads up. How did you turn in your RV? Did somebody come tow it from your house or did you take back to the RV dealership? Just curious how this is going to work.

[2Stressed]

can u still use debit cards from your bank after doing 13?