OMY my checking account has 0 available balance!

[gamama]

Hi,

I've been actively reading and learning everything I can about bankruptcy through this very helpful and informative website! Thank You for all!

Our story is reduced income & reduced business revenue for the past 2 years.

Stopped paying most cards in May 2010 - collectors have been calling non-stop. As DH and I pull together a plan of either cashing out 401k or filing bankruptcy, the clock keeps ticking and finally got a notice from Zwicker & Associates (AmEx) to notify us of judgement.

We responded with a settlement offer within the 30 day window; however, after learning about this forum and other factors, we decided it would be best to file bankruptcy, we are able to qualify for chapter 7 phase II means test.

We hired an attorney we both felt comfortable with (however, how can you *really* know if you have the right one?). We met with the lawyer end of August - decided Sept. filing will be appropriate. Because of business income coming in, the lawyer didn't want to file until I had the cash spent.

End of Sept, I thought she filed. I don't know the protocol of filing - how long it takes, etc. I thought no news was good news :-)

Well, I called her last week and found that she did not file (paid $1749 and the check was cashed last week of August) !!!

She was going to file this afternoon and still has not done so.

Tonight, I checked on my online business checking acct and found it to have a zero balance. Could a collection agency or the garnishment or a lien have taken place ??? It's too late to call the bank and I'm in panic as I have outstanding checks and I don't want them to bounce (to add fuel to the fire). THIS IS A BUSINESS ACCT. About $2k is gone (earmarked for payroll).

[justbroke]

Do you have credit products at that same bank? Many banks allow a "right of setoff", although they may not be able to do so with business accounts. In any event, sounds like what Bank of America likes to do... just take all the money in the account. If you had a judgment, you should have known about it.

Did you check the transaction history to see what type of debit it was? Usually, there'll be some indication of a hold, if it's an administrative hold.

[gamama]

thank you justbroke for the quick response!

No transaction for any item/hold, etc... No other banking relationships either.

last 2 transactions for 102.95 & 100.00 posted yesterday leaving available balance of 1993.52

it's with regions (a smaller community bank)

I'm also afraid that this avail balance maybe because of some fraudulent transaction - ie; virus or cyber hacking.

[justbroke]

I have an account with Regions as well... their Green account. Anyhow, you'll have to see what the story is tomorrow. Hopefully, it was just some processing going on. I can't speculate what it could have been since you don't have a credit account or accounts with Regions.

Best of luck hunting down the problem. Let us know what happens.

[gamama]

again, thank you for the quick response...no wonder you are a guru!

My fingers are crossed that this is just a transactional bleep - but since there is so much financial unrest, i can't just lay rest anymore.

2 transactions cleared yesterday leaving a balance of 1993.52 and 0 available balance and NO other transactions posted. I have never found myself with these financial problems to know what to expect.

i use to work in the banking environment - but that was a while ago when there was no online banking features (I know I'm dating myself).

BTW: I live in Georgia and am an avid talk radio listener. We have Clark Howard here and listened to him tonight with a caller in almost the exact same predicament that my husband and I are in. The creditors negotiated a settlement of 33% of the debt and the caller had money in 401k that she was considering taking out to pay this settlement. I couldn't believe he recommended that she take the offer of 33% and cash in 401k money w/10% hit and taxes !! Why would you do that? That was our original course of action, but after learning more, why NOT file bankruptcy ?

[BROKEDED]

Good luck. I hope it's just a glitch in the matrix. Seeing also that you have dated yourself I would guess that you don't have a great deal of to recoup losses from cashing out your 401k especially with penalties. I think you made the right choice by choosing NOT to burn up your savings. I could possibly see doing such a thing if someone had say less than $10k and were still in their 20s and doing so would wipe out their debts but that's about the only scenario I would even entertain.

Keep us posted!

[missdooly]

That's not very Regions like. If it were Bank of America, then a big ole' yes. It happened to us. Even still, I'd start looking for a smaller bank. It will take a creditor a while to find you if at all. They have to find you first. And that came out of the mouth of my attorney last week. We're filing but currently waiting on our governor to pass a much needed bill on an increase in NY state exemptions. But meanwhile..............

[Detroit]

Sorry to hear you're stressed out; I hate finding out things after everyone's closed - it's so hard to sleep at night! Hopefully you'll sort it all out in the morning.

It took my attorney about two weeks to file after I paid her and signed off on ALL the paperwork - she said it didn't normally take her that long, just lots of people paid the same week I did and they were ahead of me in line. But once she told me the day she'd file, it was filed that day electronically.

I know the bigger worry is the checking account and I hope you get it all sorted out.

[mrskal]

Did you find out what happened?

[gamama]

I did not have an opportunity to call bank today (no privacy)
however, i did some google research...

business account should be protected from a freeze if it is not attached to my social. the business is an s-corp and is under a federal id, not my social and SHOULD not be frozen for personal debt.

the account has avail balance showing 21.xx, ledger balance is 19xx.xx. I made a 1550.00 deposit today and upped the ledger to 34xx.xx, but avail still shows a 21.xx

[wsy]

Gamama, Did you say you deposited another 1550.00 into the account that shows "0" available balance?
When the new banking laws came into affect I noticed when I deposited a check, the funds are not available immediately like they used to be. Maybe they are waiting for your deposited checks to clear? Just a thought, but you stated it was a 0 balance before.
Its nice that the law protects your business accounts maybe your bank doesnt know that?
Good Luck.

[gamama]

i'll let you know tomorrow.
thanks!