Can I close a bank acct while in Chapter 7?

[wipetheslate]

I filed an AP to try and get my student loans dismissed, so it's going to be a while before my Chapter 7 is closed.

In the meantime, can I close my savings+checking account at my credit union? I'd opened another bank over fears they'd pull some funny stuff as I have/had a credit card with them, which was included in the bk. They required $105 to open the accounts. I could use that money. May I close the accounts or is that not permitted as they are part of the estate?

[BKParalegal]

If the chapter 7 trustee filed the no asset report (typically filed within a day or so of your 341 meeting of creditors) then you are free to do what you want with your assets

Good luck on the AP

[tcreegan]

Hi wipetheslate,

You're not hiding anything + $105 is peanuts = not a problem.

Glad to see you post again, hope everything is going well for you.

Be sure to let us know how the AP goes!

Tom in Colo

[wipetheslate]

Thanks, folks! Yep, trustee declared me assetless after my 341.

I'll keep folks posted on the AP--I'm sure I'll be here regularly asking questions!

[ValleYum]

I read an interesting Memorandum Decision on a Student Loan AP from here in Western Washington (9th circuit though - same as HI). The debtors were only 30 and 33 and they won based on their overwhelming financial condition. It may make for interesting reading for you, wts.

https://ecf.wawb.uscourts.gov/cgi-bin/show_opinion_doc?77,455677

If it doesn't help you - maybe it will help someone else. Best of luck to you!!!

[wipetheslate]

Account locked! They wouldn't let me close my account today because it is locked by "the collections department." Thankfully, I knew from visiting these forums to open a new account not associated with a credit card, so it's not a devastating account lockage. But it's still annoying. Woman at my credit union said she'd speak to collections on Monday and call me then. So we'll see. I told her that was illegal and I just really wanted my money so I could move on and that I didn't want to have to go to court. We'll see.

[wipetheslate]

I read an interesting Memorandum Decision on a Student Loan AP from here in Western Washington (9th circuit though - same as HI). The debtors were only 30 and 33 and they won based on their overwhelming financial condition. It may make for interesting reading for you, wts.

https://ecf.wawb.uscourts.gov/cgi-bin/show_opinion_doc?77,455677

If it doesn't help you - maybe it will help someone else. Best of luck to you!!!

Thanks ValleYum. That's a good one for me because they are working vs. being disabled, etc.

[discouraged]

This forum has been so helpful for me in that respect also. I quietly withdrew all my money and, as I had an account with Wells Fargo which I only used to have extra savings and as a what if type of thing and I put it in there. Well, after reading all the bad reviews of WF, I again quietly opened up an account at a small neighborhood bank and put my money in that. my first bank will not let me close as they had put 400 in for check protection and I had only paid back 100. My lawyer told me not to pay them as it would be preferential. Their loss. I am leaving 11 in WF and hope creditors look there first. My little bank I have to leave 50 in to keep it open and I have taken everything else out.

Thank you Forum!

[wipetheslate]

Spoke with someone on the phone today. They're trying to keep my money. Probably used to dealing with people who are too ashamed to demand their money. Confirmed they received the discharge paperwork. She asks 'you do realize you have a Visa here?' to which I reply Yes. She says well 'we'll charge off the Visa and keep what is in your account.' Uh, thanks honey for doing what you are legally required to do with regard to my cc debt. I reply it would be illegal to claim the money in my accounts. She then said she'd have to call me back.

Is there anything that would allow the credit union to take money from my bank account for an unsecured credit card? There was no lien against my accounts before I filed. Don't see how one could have been created after I filed with the automatic stay and all.

I'm going to try one more time in person and then I guess I will have to file paperwork with the court. Fun, fun, fun. It's only $105, but with my reduced work schedule I need that money to make it to my next paycheck.

[discouraged]

105 is a fortune when you're broke. It can make the difference between eating or not eating. Good luck to you. Glad to see you are fighting for your rights.

[wipetheslate]

Looks like I'm going to have to go to court. They were advised by their attorney not to release my money. Well, let the billing for my time begin.

[tcreegan]

Hi wipetheslate,

Credit unions are somewhat notorious for having "cross-collateral" clauses. The checking/savings account is collateral for the credit account. Instead of being unsecured, the credit acct is actually secured by the other accts.

Credit unions are, according to ACH, the ankle-biters of the financial world.

Tom in Colo

[wipetheslate]

Credit unions are, according to ACH, the ankle-biters of the financial world.

LOL. Thanks for the laugh, Tom. I needed that!