Bank took $1100 out of my checking account

[debtmonster]

I asked my attorney about this.

My letter to my attorney:

We have a checking account with Bank of America and we have a credit
card with them with a $900 balance. Now that you guys have filed the
bankruptcy for us, should we have any concerns with Bank of America
attaching our account? I read on a bankruptcy forum that I should
close our checking account and open up a new account with a bank that
we're not including in the bankruptcy. I'm happy with Bank of
America. Should I worry?

His response:

They can't do that once the case is filed.

So I guess I will have to wait and see.

[aces67]

IDK our lawyer told us the exact opposite. He had close our account immediatley and change banks.

[debtmonster]

IDK our lawyer told us the exact opposite. He had close our account immediatley and change banks.

Then I will have to go "Bock bock bock bagawk" and run. I don't want to do that. I'll just have to wait it out.

[foolishpast]

Is the difference that Debtmonster is filed? It sounds like they can do this BEFORE you file but not after. Is that correct? I hope so. I too love my BofA checking account. I moved my direct deposit to another bank but I would really like to go back to using my BofA account. I would also assume they can't do it once the debt is discharged, is that correct?

[debtmonster]

My lawyer told me that once you file, they legally can't touch your checking account.

I guess I will find out the hard way if they snatch all of my money. They can take a $900 dollar chunk out because that's what my wife owes them on her BoA credit card.

[DeadManCrawling]

My understanding is the same as Debtmonster.

once you are filed the money and assets are not yours to be seized. They are actually property of the BK estate, administered by the trustee, and are subject to being exempted (for your benefit) or sold (but only by the trustee) for creditors benefit. I have heard of creditors attempting to levy accounts after or as a BK is filed, but I don't think many of them are successful and get to keep the funds.

[DSIG]

Is it safe to open a new account the day after filing and change the direct deposit at that time. The exisist checking account can remain open, I guess.

Doing all this prior to filing just means more disclosures and possible questions from the trustee.

My dilemma is not that my bank will rape my checking account. They are actually the only creditor that knows I am filing and their bankruptcy department has been very helpful with explaining their policies. They told me that they will restrict my online access. That makes my checking account with them useless. They said I can retain my other financial products with them (I have auto and life insurance policies) but that I cant open any new products. So, time to shop for a new bank.

[lrprn]

The issue here in the OP's first post way back when is that the bank took her funds out of her account BEFORE she filed, probably using a cross-collateralization clause. This is why the bank does not have to return the funds. No filing, no automatic stay protection - her bank had every legal right to do what they did.

[debtmonster]

So after my discharge I won't be able to write checks or pay my bills on-line the way I have been for the past 5 years?

[lrprn]

So after my discharge I won't be able to write checks or pay my bills on-line the way I have been for the past 5 years?

DM, how in the world did you ever arrive at this conclusion from the replies here?

You can write checks and pay bills online from your bank's bill pay feature *during* your active bankruptcy. Why would you think you couldn't do so afterwards? To answer your question, yes, you can write checks and pay bills online through your bank or credit union before, during, and after your bankruptcy.

[music12]

it's because DSIG said they would restrict his online access to his checking account, DM worries the same will happen to him.

[debtmonster]

it's because DSIG said they would restrict his online access to his checking account, DM worries the same will happen to him.

Exactly. I am going through enough grief as it is. I have about $50 in my checking right now and before I was falling back on a Shell gas card to put gas. Now that will be shut off any day.

We were also using the Bank of America and Shell credit card during the last 90 days for small things. I wonder if that will cause any issues. My wife did her nails and charged money plus we ate and spent like $50 bucks for restaurants and stuff. I thought we could ride-through and keep paying on the cards. After we met with the paralegal she said no and that once the banks got wind of the bankruptcy that they would shut both cards off.

[DSIG]

So after my discharge I won't be able to write checks or pay my bills on-line the way I have been for the past 5 years?

debtmonster:

each bank is different and has their own policies for customers who file bk. I bank with USAA. I read on another message board that a USAA member had their online access restricted for filing. I contacted USAA to find out if this was true. They confirmed that they restrict online access but that this is an out-dated policy which they intend to revisit in the near future. They probably dont know how to disable certain product offer features online for bk filers. I doubt they are doing this to inconvenience me or lose me as a customer. The reality, though, is that my checking account with them is useless if I cant use bill pay and they also have a nice deposit at home feature that lets you scan your checks. I dont see myself mailing whatever paper checks I have at their only branch in TX. Its more convenient for me to open an account with a bank that has local branches. USAA said that I can keep my checking account and my insurance policies, but no online access.

[debtmonster]

Yeah, I don't mail paper checks neither. I've been using on-line bill pays since the year 2000.

So what is going to be up with Shell and BoA about me making those small charges within 90 days? Are they going to rag hard on me about that?

[Amy26]

So far none of my cards have said anything about the charges that happened within 90 days. Only one that has was the jewelry store card that we got our engagement rings from about 3 weeks before we filed. I had at least 4 cards with recent purchases.