Wells Fargo froze exempt funds and Trustee won't release!

[kleinkp]

Wells Fargo froze $10,000 in exempt funds and wont release them until the Trustee authorizes the release. We have a real ball buster Trustee who wants to know where every last penny came from. We switched banks before filing to WF under the advice of our attorney who failed to mention WF could possibly do this. My wife and I have been saving money in the bank and out of the bank for years in preparation of her not working any longer to care for our new born. We tried explaining this to the Trustee who will no longer work with us until the 341 meeting which is still weeks away. Our attorney has tried to comfort us saying that the Trustee is being stubborn and difficult and is reassuring us that the money is exempt and eventually has to be released.

Is this true and it just a waiting game now for release of our exempt fund?

[SunshineGal]

Hate to say it, but this is standard procedure for WF. If you think that is bad, check out this case!

http://www.bankruptcyorlando.com/2011/01/wachovia-bank-goes-wild-freezes-the-bank-account-of-bankruptcy-debtors-boss-1.html

[tobee43]

Hate to say it, but this is standard procedure for WF. If you think that is bad, check out this case!

http://www.bankruptcyorlando.com/201...rs-boss-1.html

WOW!!!!! unreal!

[discouraged]

That is incredible! I am soooo glad I listened to everyone's advice and got out of WF!!

[chicagoannie]

Washington Bankruptcy Exemptions:

Homestead $125,000*

Wearing Apparel $1,000

Furs, jewelry, and personal ornaments for any individual, private libraries $1,500

Family pictures and keepsakes $1,500

Household goods, appliances, furniture, and home and yard equipment, $2,700

Other personal property $2,000

Motor vehicle $2,500

Cash or bank accounts $100

Two motor vehicles, farmer's equipment and tools $5,000

Professional library, office furniture, office equipment and supplies $5,000

Tools of trade $5,000

[ValleYum]

But we can also use Federal Exemptions in Washington.

Homestead:

522(d)(1) Real property, including mobile homes and co-ops, or burial plots up to $21,625. Unused portion, up to $10,825, may be used for other property.

522(d)(5) - $1,150 of any property, and unused portion of homestead up to $10,825. The maximum amount that can be claimed exempt under the wild card exemption is $11,975.

http://www.bkforum.com/wiki/Federal_Exemptions

The biggie for cash exemptions is the one above utilizing the unused portion of the homestead exemption along with the $1,150 wild card amount.

[kleinkp]

I have heard back from the Trustee and he wants to know where, with proof (which we already gave him) or a declaration stating we saved part of the funds in cash(which we did, didn't know you couldn't save money in cash anymore)!

The only reason we took our cash on hand and deposited in the bank was to be completely honest about all funds at the time of BK.

We opened a new account in WF because our mortgagee is with our old bank which might take the funds.

He's a real ball buster who really isn't able to read a account histories, we had a $6,000 deposit into WF which we moved around our 4 accounts with WF and we laid out a lettered map coinciding with which account we transferred funds to and from and he still can't wrap his head around following account #'s and transaction #'s!

We were told by multiple BK attorneys that we have around $23,000 wild card exemption were eligible for!

[ValleYum]

Are you in Eastern Washington?

[free2breathe]

I have heard back from the Trustee and he wants to know where, with proof (which we already gave him) or a declaration stating we saved part of the funds in cash(which we did, didn't know you couldn't save money in cash anymore)!

The only reason we took our cash on hand and deposited in the bank was to be completely honest about all funds at the time of BK.

We opened a new account in WF because our mortgagee is with our old bank which might take the funds.

He's a real ball buster who really isn't able to read a account histories, we had a $6,000 deposit into WF which we moved around our 4 accounts with WF and we laid out a lettered map coinciding with which account we transferred funds to and from and he still can't wrap his head around following account #'s and transaction #'s!

We were told by multiple BK attorneys that we have around $23,000 wild card exemption were eligible for!

I would think that would be the Federal exemptions X 2 (you each get the exemption when filing joint)

[Fallonedward]

It is stories like this that will never make me want to do business with Wells Fargo in the future. This is a bank I will stay clear of for the rest of my life

Hate to say it, but this is standard procedure for WF. If you think that is bad, check out this case!

http://www.bankruptcyorlando.com/201...rs-boss-1.html

[mom2crazies]

Your mistake was that you were being honest. Apparently, in a bankruptcy its like gasoline on a fire. I hope it gets cleared up very soon!!

[WhatMoney]

Hate to say it, but this is standard procedure for WF. If you think that is bad, check out this case!

http://www.bankruptcyorlando.com/201...rs-boss-1.html

Wells Fargo purchased Wachovia in Dec. 2008, so we should remember to include Wachovia as another WF bank company that has this obnoxious policy of freezing accounts after BK.

[justbroke]

Wells Fargo has already been spanked once, publicly, for this practice. Methinks that you should have your attorney get them spanked again.

[justbroke]

I wanted to add that as soon as this happened, you and your attorney should have filed an Ex-Parte Emergency Petition to Compel Wells Fargo to release the funds. That would not only put them on notice, but would also let the court know about this. Your attorney would schedule an emergency hearing as well. It's not the Trustee's issue and they sometimes don't get involved in such matters.

[kleinkp]

After explaining every last penny to the Trustee, he has agreed to release the funds! So hopefully monday morning my money will be unfrozen and I can withdraw and open a new account else where!