Bank took $1100 out of my checking account

[California]

Im about to file bankruptcy (the forms have not been filed yet) and the bank took out $1100 from my savings to pay for a car I plan on surrendering,

I thought that if a bank does this you can get the money back when you file bk, is this true?

[JRScott]

I'm sorry this happened. If you have anymore money at this bank you need to take all the money out now and move it to another bank...savings and checking. There must be a cross collaterallization deal with the loans.

Since they took it out before your filing, I don't think you can get it back

[LSUTiger32]

This is a good reminder for everyone. Never have money in a bank that you owe money to and are late on or plan on IIB. They will take it.

[hopeforus]

Yep we moved ours all to a locally owned bank a few months ago. Was a pain in the butt because we had just moved from USAA (where we have our mortgage and a credit card) to USbank where we had no debt. BUT... We got a letter from USBank about owing money to Elan Card which was from First Flight. I guess they were part of them now so we didn't feel safe with USBank anymore even though they said they couldn't take our money for Elan. I didn't trust it.

So we switched and I'm assuming since it's a locally owned bank that we are ok now.

[tsharpe1992]

What could happen if you have 3 houses with the same mortgage company and you let one go through a Ch 7. Will it affect the other two even it they were payed on time and no lates.?

[California]

I'm sorry this happened. If you have anymore money at this bank you need to take all the money out now and move it to another bank...savings and checking. There must be a cross collaterallization deal with the loans.

Since they took it out before your filing, I don't think you can get it back

Why dont you think I couldn't get it back. The law says that if more than $600 is paid to the creditor within 90 days than that is a preferential treatment and the trustee can get it back. If I have it exempted on schedule C shouldnt that be good enough?

Also, if you have money taken out as the result of a garnishment or levy you can get it back by telling the creditor to surrender it or by getting a court order for them to do so (as long as you have it exempted)

Shouldn't the offset be treated the same as a garnishment or levy?

[frogger]

If you have anymore money at this bank you need to take all the money out now and move it to another bank...savings and checking.

I agree with what you're saying and in "most" cases, that should be the case. However.... the banks also print out end of month reports that show closed accounts and accounts with no activity.

We have a few accounts at banks that we owe money to. We're not behind with them (yet), but we have brought the balances down to less than $100.00 for each of the accounts. We're also not using the accounts for deposits or checks. So, to keep them active, I just do a little money transferring between the accounts each month.

I don't want to be on the end of month list looking suspicious. At this time, I still want to look like that good customer that I am!

[DeadManCrawling]

Even if the trustee DID recover it as a preferential payment, you would not receive it.

He would divide it among your creditors and it would be paid to them as part of your BK estate.

Sorry to hear this happened to you.

Since you have not yet filed, exemptions do not apply. Your exempt assets are only protected AFTER the filing occurs.

[California]

Since you have not yet filed, exemptions do not apply. Your exempt assets are only protected AFTER the filing occurs.

I think your statement was a little wordy and just not true,

If you had money taken (before filing) as a garnishment you can exempt the money and get it back.

If you had money taken (before filing) as a levy you can exempt the money and get it back.

In both of these cases money was taken before the filing but if it is listed in Schedule B as an asset and exempted you can get it back.

This is even proven further by the fact that the creditor cannot hold assets of the estate and deprive the owner the use of them if they are exempted.

This is why when you have money taken out as a garnishment (and the money is exempted) you can call the creditor and tell them to release the money. If they do not release the money than they face a violation of the automatic stay for depriving the debtor of there property.

[flnybk]

Do we need to move banks even if they are not "direct deposit" for payments on them? We have our 2nd and 3rd lines with WAMU. chase just bought them over and our checking acct # is the same. It will be a PAIN to get a new bank them switch our payroll deposits automatic with our jobs. UGH.

[aces67]

If you're using a bank that you also owe a debt of any kind to then you need to change banks ASAP!

[dscurlock]

Im about to file bankruptcy (the forms have not been filed yet) and the bank took out $1100 from my savings to pay for a car I plan on surrendering,

I thought that if a bank does this you can get the money back when you file bk, is this true?

are you saying something like you had citigroup as your
car, and citibank took out the payment, for example?

[bankruptsee]

A creditor took $127 from my bank account - post judgement, of course. They went through all the legal means to get it. A week after the took it, I filed for BK. About 3 weeks after that, the creditor sent a check in my name for $127 to my lawyer.

That was a surprise.

[jribe]

Im about to file bankruptcy (the forms have not been filed yet) and the bank took out $1100 from my savings to pay for a car I plan on surrendering,

I thought that if a bank does this you can get the money back when you file bk, is this true?

you need to give more clarification. Was the loan through the same bank? Or was it an ACH that you asked to be stopped (to be paid to a different lender)?

If it's the later- you can file a claim with the bank (reg d i believe) and get the funds back.

If it's a loan you had with the same bank- no go. They are owed the money and since you have an account there (with auto pay i assume) they had the right to take it.

If you want to provide more info i can provide a better answer

[jribe]

Why dont you think I couldn't get it back. The law says that if more than $600 is paid to the creditor within 90 days than that is a preferential treatment and the trustee can get it back. If I have it exempted on schedule C shouldnt that be good enough?

Also, if you have money taken out as the result of a garnishment or levy you can get it back by telling the creditor to surrender it or by getting a court order for them to do so (as long as you have it exempted)

Shouldn't the offset be treated the same as a garnishment or levy?

they won't give it back to you! It will go towards your creditors.. You don't get the benefit of prefrential payments.