Direct Deposit

[dspii]

I filed C7 a couple weeks ago and so far my bank account is still active...as far as ATM's and online access. My question is, can they grab my direct deposit that is due this week? I did list them as a unsecured creditor (cc) in my filing.

My lawyer said it will not be a problem, but after some horror stories I have read in the forum...I am a little worried. When I filed, that cc was current and not overdue. If I understand the BK thing, they can't touch anything due to the imposed stay, is this correct?

I also have an IRA with them...I was hoping not to change banks due to several reasons and if I am protected by law, I would like to leave it alone.

Since I already filed, they can't touch it?......Right?

[whipster1]

Never a good idea to bank where you owe. Open another account ASAP.

[shabam]

Just to be on the safe side, I would change banks.

[AngelinaCat]

We had to reaffirm our auto loan and an overdraft protection loan with our CU, or else all the accounts would be closed. There were some paperwork problems and about two weeks of earnest fingernail biting and telephone session with the CU's BK department, we were okay.

But as others have said, it is never a good idea to have a loan or cc with an institution you bank with. If you can, I suggest moving your checking/savings accounts ASAP.

[lrprn]

My lawyer said it will not be a problem, but after some horror stories I have read in the forum...I am a little worried.

If several weeks have already passed, then your creditors have been notified and can't take anything without violating your automatic stay.

The horror stories here happened right before or within a few days of filing. This is not the case for you.

If I understand the BK thing, they can't touch anything due to the imposed stay, is this correct?

You are correct.

I also have an IRA with them...I was hoping not to change banks due to several reasons and if I am protected by law, I would like to leave it alone.

If your lawyer told you that your IRA is safe, then I would believe that it is. Again, if nothing is has been done by now, chances are 99.9% nothing will be. (And I left the 0.1% chance only because there can be the one stupid creditor/credit union/bank who doesn't understand the stay and tries to do something they shouldn't )

[dspii]

We had to reaffirm our auto loan and an overdraft protection loan with our CU, or else all the accounts would be closed. There were some paperwork problems and about two weeks of earnest fingernail biting and telephone session with the CU's BK department, we were okay.

But as others have said, it is never a good idea to have a loan or cc with an institution you bank with. If you can, I suggest moving your checking/savings accounts ASAP.

Good info...I have a Direct Deposit due this Friday and according to our HR, its too late to stop. I think the best idea is to withdraw most of it in cash and move to another bank as soon as the funds are available. I figured my lawyer knew what he was talking about, he does have a vested interest, he has a post dated check for this Friday.

[want2save]

I did an bank to bank transfer of all my IRA accounts prior to filing as the bank where they were had been taken over by one of my unsecured creditors. I did not think this was necessary but exercised an abundance of caution as my life savings were there. This did cause more paperwork to supply to the Trustee, but gave me total peace of mind.