QUICK HELP!!! Credit Union FROZE my accounts AFTER filing Chapter 7...

[tobee43]

is there any case or law that i can "use" for pressure here?

yes....you do once you file under the federal guidelines have the stay put in effect....i'm looking...got it...i think...


"creditors generally may not take certain actions: prohibited collections actions are listed in the bk code 362...common example of prohibited actions include contacting debtors by phone, mail or otherwise to demand repayments.: taking actions to collection money or obtain property from the debtor: repossession of the debtors property" starting or continuing lawsuits or foreclosures and garnishing or deducting from the debtors wages. under certain circumstances, the stay may be limited to 30 days....etc.....

[gman]

Awesome advice! Thanks!

I also spoke to the Trustee's admin. (He is out in court all day.) She was very nice and will take an email I draft to her and forward it to him.

If you filed pro se, I would start drafting an Emergency Motion for Entry of Order to Show Cause. That way, you have it ready for tomorrow. You'll need to follow your Court's emergency procedures, and that may include calling your Case Manager and/or your Judge's deputy (courtroom clerk/deputy). Simply filing an "emergency" motion doesn't always get you an immediate hearing... you actually have to schedule it! These can sometimes be telephonic.

If that IRA was in the same bank, then the bank may still be confused about how to proceed. This is probably why they are referring it to counsel. You may want to remind the Bank's attorney that Well's Fargo was spanked for this same exact thing. Wells Fargo, and banks, have absolutely no right to freeze money in anticipation of the Trustee wanting it. Only the Trustee can request such and it's done by court order. Inform them that it's a violation of the automatic stay under 11 USC 362 and that you're proceeding with an Emergency Motion for Entry of Order to Show Cause and for Sanctions. That should wake them up.

Question: Do I simply call the BK Court and ask for the "form" and procedures to file an Emergency Motion for Entry of Order to Show Cause and for Sanctions?

Note: The IRA funds were with a completely different financial institution. The checking account where the funds were deposited and the car loan (that has never once been late) are with the credit union.

IRA funds are protected and since you did this "post-petition", those funds would still not be part of the Bankruptcy Estate. Again, I'd be preparing my motion and be prepared to file it today or early tomorrow. Make the appropriate phone calls. Make sure you have their attorney contact so that you can serve the emergency motion on them.

[justbroke]

is there any case or law that i can "use" for pressure here?

11 USC 362(a)(3)... although pertaining to preoprty of the estate, reads

11 USC 362(a) (a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of—

(3) any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate;

Wells Fargo was spanked in the highly publicized and recent case In re Mwangi, Case No. 09-1408 (9th Cir. B.A.P., June 30, 2010), for doing exactly what your credit union (CU) is doing to you.

Additionally, your CU is holding "post-petition" funds as well. Even though you took a distribution from a Protected IRA, they seem to think that the post-petition funds are okay for them to freeze. Hopefully it doesn't take much convincing from your Judge.

[gman]

11 USC 362(a)(3)... although pertaining to preoprty of the estate, reads Wells Fargo was spanked in the highly publicized and recent case In re Mwangi, Case No. 09-1408 (9th Cir. B.A.P., June 30, 2010), for doing exactly what your credit union (CU) is doing to you.

Additionally, your CU is holding "post-petition" funds as well. Even though you took a distribution from a Protected IRA, they seem to think that the post-petition funds are okay for them to freeze. Hopefully it doesn't take much convincing from your Judge.

Question: Is "pressure" better placed via the Trustee or via the Judge - especially if I want to get this fixed ASAP?

I figure the Trustee can make a phone call to the Credit Union without an Emergency Motion while a Judge requires that the motion be filed and heard.

Correct?

[justbroke]

If they claim they're holding it for the Trustee... the Trustee has more weight. I'd still be preparing the motion. There is no form for a Motion for Entry of Order to Show Cause.

FWIW, an Emergency Motion can usually be heard within a day if you know how to schedule it properly.

[gman]

Update:

I sent an email to the Trustee outlining the issue.

I added the fact that my unemployment check was deposited (direct deposit) into the frozen account on Oct 8 - and this is part of the money the credit union is holding from me.

Next step - file an Emergency Motion (in case the Trustee cannot help.)

Off to the courthouse.

What a mess!

[gman]

Well, the credit union just called and is releasing my funds immediately.

So - as far as my checks bouncing - I should be OK.

Whew!

[tobee43]

Well, the credit union just called and is releasing my funds immediately.

So - as far as my checks bouncing - I should be OK.

Whew!

well geeh g......thanks great news....as you can tell no one really cares about you...LOL!!!

please don't do that again! be still my heart!! now...onward and forward please!

[mommi2many]

Gman,

What an eventful morning! I'm so glad it all worked out for you and so quickly, too. Way to go.

[justbroke]

Well, the credit union just called and is releasing my funds immediately.

Do you know if this was due to your phone call, or did the Trustee intervene?

[ccsjoe]

Great news gman. Glad it's over. Wondering the same as jb?

[gman]

You guys/girls are the BEST!

Thanks to everyone who helped.

[AngelinaCatHub]

Well, the credit union just called and is releasing my funds immediately.

So - as far as my checks bouncing - I should be OK.

Whew!

Kool. Now tell me this place does not love folks we have never even met.

JB your legal eye is superb, but all the others backing and rooting for sure could not hurt. Yes I would also like to know about what may have happened. It may have only been the OP's telco call and the officer addressing their legal department as to bad timing.

Reading this news has made my day as well as our host's as it pleases me to see happy people. We sure have a great family.

Grats 'gman' I'll bet only one other thing could make a day like this. The 'hamster dance' day. LOL.

A great excuse to crack a beer. I'm going to have two in your victory honor. 'Hub

[Freddy03]

A great excuse to crack a beer. I'm going to have two in your victory honor. 'Hub

Sounds like a plan! I will do the same! (after 5pm of course)

[gman]

Do you know if this was due to your phone call, or did the Trustee intervene?

It must have been my first phone call to the credit union [and I mentioned there was caselaw where they could not do what they were doing.]

The Trustee was "in court all day" so I highly doubt he contacted the credit union.

It never got to the point of me filing an Emergency Motion with the court.