Should I really close my checking account?

[foolishpast]

I have been a customer of Bank of America for close to 20 years now. Unfortunately, I am including a credit card and loan through them on my Chapter 7 bankruptcy. I've read where people recommend you change banks if you are including your bank in your filing. Why is this? What will they do to me? What have others experienced? I'm on my kids accounts as well. Is this going to impact them?

[eddiep]

Yea you need to move your money, in that teeny tiny print on the cc contract there is usually a cross-colatoraliztion clause. Basically you have given them permission to take money from the account you have with them in the event that you default on your cc payments. They can and will take your money without notice to make a payment on your outstanding cc debt. You dont have to close the account but move the money to another bank.

[foolishpast]

And what about my kids account? I'm a signer on their account? Can they take money out of their accounts as well? I just missed my first payment with them. I should be officially filed by next week. Once I'm actually filed can they still take the money?

[Doghouse]

Move your money. Don't take any chances. Too many people have been burned leaving their money in the bank/cu where they owe money included in bk.

[bk4sky]

yeah if you owe BOA then you need to move the money out, they can seize it.

[foolishpast]

Does that include my kids accounts that I am a signer on? They are their accounts however we are linked to my account so i can transfer money in and out. I don't want them knowing what I'm doing. I have no idea how to ask them to close their accounts. I've always loved BofA and so do they.

Also, how long does it take to change your direct deposit?

Oh and one more thing.....once the bankruptcy is over is it safe to use the account again or will they find other ways to retaliate against me?

[TEW]

Yea you need to move your money, in that teeny tiny print on the cc contract there is usually a cross-colatoraliztion clause.Not true only CUs cross-collateralize Basically you have given them permission to take money from the account you have with them in the event that you default on your cc payments. They can and will take your money without notice to make a payment on your outstanding cc debt. You dont have to close the account but move the money to another bank.

OP BOA is one of the worse the will take your money out of your checking account to pay the CC If you have already file they would have to give it back but its a hassle.

[epiphany]

Oh, you need to ditch BOA ASAP. Believe me, I do understand the whole loyalty, loving them, having great service for umpteen years thing, but you don't have a choice. It was with a very sunken heart that I left the credit union that I had no other choice but to default on.

You are going to have a harder time opening up a checking account somewhere else after you file so you should do it before you file. Close your kids accounts and open them up somewhere else, at a place that you don't currently have any obligations to. Otherwise, you may just find all of these accounts frozen until the time you are officially declared discharged.

And if you are successfully discharged, BOA will close those accounts anyway right after. Do yourself a favor and be proactive.

Best of luck to you,

ep

[foolishpast]

So you're sure they'll go after my kids accounts as well? My daughter is an adult so I don't know how to go about getting her to close this account that she has had for 4 years. She also has a credit card through them (which I'm not on at all). I just can't believe they can go after familys accounts.

I also have a credit union credit card that i am having to file on. That one bothers me the most. When every other bank/company was raising my interest and lowering my limits they maintained my limit & interest rate.

Why will I have trouble opening another account after? I thought they just check chex systems.

[StartingOver08]

Banks can and do pull your credit report to open new accounts.

[jribe]

Does that include my kids accounts that I am a signer on? They are their accounts however we are linked to my account so i can transfer money in and out. I don't want them knowing what I'm doing. I have no idea how to ask them to close their accounts. I've always loved BofA and so do they.

Also, how long does it take to change your direct deposit?

Oh and one more thing.....once the bankruptcy is over is it safe to use the account again or will they find other ways to retaliate against me?

yes, it includes your kids' accounts. This is because you have the ability to access the money and are the one with authorization on the account.

It takes about 2-3 pay cycles for direct deposit to kick in, depending on your company. Just ask for a paper check until then.

[SocalBroke]

another thing my lawyer told me (after I already did it) is don't open a new account with Wells Fargo even if you don't owe them money. They have a tendency to 'freeze' your account and my lawyer said he normally has to contact the trustee who will then tell the bank to unfreeze it. Not a major problem if you don't leave much in there but can be a pain in the butt for a week or so. I plan on taking everything but $50.00 out of there right before my lawyer files.

[jribe]

So you're sure they'll go after my kids accounts as well? My daughter is an adult so I don't know how to go about getting her to close this account that she has had for 4 years. She also has a credit card through them (which I'm not on at all). I just can't believe they can go after familys accounts.

I also have a credit union credit card that i am having to file on. That one bothers me the most. When every other bank/company was raising my interest and lowering my limits they maintained my limit & interest rate.

Why will I have trouble opening another account after? I thought they just check chex systems.

if your kids are adults, just tell them you want to be removed from their accounts. That will solve the problem. If you are on anything- the bank can and will take the money. You just go to the bank with your kids and see a banker for the maintenance.

[2Bshinyandnew]

Does that include my kids accounts that I am a signer on? They are their accounts however we are linked to my account so i can transfer money in and out. I don't want them knowing what I'm doing. I have no idea how to ask them to close their accounts. I've always loved BofA and so do they.

Also, how long does it take to change your direct deposit?

Oh and one more thing.....once the bankruptcy is over is it safe to use the account again or will they find other ways to retaliate against me?

If your kids are adults, I would tell them the truth.

BOA will have no allegiance to you when they go and grab the money in any open account you are linked with...including your adult children. Could it be an unnecessary move on your part? Sure. I would say you have a 50/50 chance that BOA will levy any account you have a connection with once you are more than 30 days late on a loan, cc, or any line of credit.

[MichiganMan]

move the money now

So you're sure they'll go after my kids accounts as well? My daughter is an adult so I don't know how to go about getting her to close this account that she has had for 4 years. She also has a credit card through them (which I'm not on at all). I just can't believe they can go after familys accounts.

I also have a credit union credit card that i am having to file on. That one bothers me the most. When every other bank/company was raising my interest and lowering my limits they maintained my limit & interest rate.

Why will I have trouble opening another account after? I thought they just check chex systems.

Would you rather explain to your kids that you are moving their money or that it is gone!

Just move it now! BK has downsides.