Bank account question during the bankruptcy.

[sophia]

Hi, I'm in Florida and will be filing shortly.

Once one files can you still use your bank account?

I know all the monies I might have in the account become part of the estate the day I file, but can I deposit money after and use it but just make sure to keep the money part of the estate separate from any new funds?

Or do they freeze up your accounts?


TIA

[jeb]

Tia, you can keep and use your bank account as per normal - however, IF you have loans with the same bank - B of A, for example - they may have a cross collateral clause that would allow them to take money from your account to pay the loan.

If this is the case, it is recommended that you open a new account and THEN close that one out.

And welcome - seems half the state of FL are here on this forum. - jb

[TEW]

BANKS rarely have collateral clauses I have a checking account with BOA and I surrendered a car they did not take any money. collateral clause are used with credit unions

[Flamingo]

You should not have any difficulties with your checking account. Where you could have problems is if you have a line of credit tied to it for overdraft purposes which will probably get closed upon your filing. Do you have any automatic payments coming out of your checking account to any creditors (i.e., auto, mortgage, credit cards?). That could present a problem because the creditors may not stop the withdrawals at your request and you may have to close the account to stop the withdrawals - check with your bank if you have that issue.

[sophia]

Thank you for your replies.

I have a B O A account, 3 cards total with them between myself and my spouse totaling close to 35k. The other 4 cards are Chase, Citi & 2 store cards.

I actually read here before seeing our lawyer and opened a Checking & savings at the Credit Union through spouses job and already moved all our monies except a few bucks to the new account. Also have his paychecks being direct deposited into the new account already.

We rent and have no automatic payments taken out of our accounts.

Since we owe no monies to the Credit Union our account is safe I gather?

So, as long as I make sure to keep all monies included in the bankruptcy that are part of the estate separate in case they want some of it, I will be able to keep using the account from what I understand of all your answers.... Good to know.

We were thinking of filing the first of march but it looks like we may have to wait till the first of April.

[StartingOver08]

You have it right the day of filing is a snapshot. The amount of funds in your bank accounts (all) as of the date of filing need to be less than the exemption. In Fl you want to have next to nothing in all of your accounts because the exemptions are so small here. (My attorney said to have $100 in the account at the most). Whatever figure is in the petition is what you can have, anything over that on the day of filing goes to the Trustee.

Afterwards, you can use the accounts per usual.

[jeb]

BANKS rarely have collateral clauses - TEW

The first thing out of my Attorneys mouth was to close my BofA checking and savings accounts. He said they were not suppose to touch them but they had been doing so and it was a mess trying to get them to replace the money. - jb

[CatsInTrouble]

my attorney also said to start over at a new bank the day of filing - he didn't say that phrase- collateral whatever- but he did say he'd seen many banks try to pull money/payments AFTER the filing. Best to go with a new acct not connected to the past/bills/auto pays/etc.

[gogetter76]

Hello,

My people...lol...sorry just had to say that.....mentioned they would file a day after my car payment would be due. That way it looks like less in the bank.

We have 2 vechicles and our insurance through an auto pay. No credit cards.