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So my old bank (credit union) appears to have frozen my account-what do I do?

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    #1

    So my old bank (credit union) appears to have frozen my account-what do I do?

    I left $300 in there to cover two ach tax payments to state and feds, and now they show I have $300 with 0 available. So obviously they finally got wind of my filing. How do I get them to release my funds, so I can at least go get them since the ach payment did not go through as scheduled yesterday?
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    #2
    Called my lawyer's office, they think they may be able to keep the money. I figured it was a calculated risk leaving it in there, but maybe I will get it back after the 341. Sucks.

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      #3
      alibaba - do you owe this bank/credit union money? In other words, are they a creditor in your BK? If yes, they're "offsetting" your account from what you owe them...I would count on that $$ as being gone, at least for the time being...

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        #4
        Cross-collateralization.....it stinks, but yes, if you owe the credit union money they can and usually will freeze the account. If you read whatever paperwork you have for whatever loan/debt you owe them, you'd see a clause stating they have that right to collect from the funds you have on deposit with them.
        Filed pro se, made it through the 341, discharged, Closed!!!

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          #5
          Can banks that are not credit unions freeze and keep the money to offset other accounts like the credit unions?
          New beginning

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            #6
            Originally posted by JJK View Post
            Can banks that are not credit unions freeze and keep the money to offset other accounts like the credit unions?
            I think the general advice is that if you owe ANYTHING to any bank/credit union that will be part of your BK - which means any bank etc to whom you owe money - MOVE your acct asap to a bank or CU to whom you owe nothing - that is, you'll just have your checking/savings acct and NOTHING!!! else.

            Beware though - Wells Fargo/Wachovia WILL freeze your account even if you don't owe them anything.

            I think the general suggestion is also to try to find a small(er) community bank or CU.

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              #7
              Yeah I was aware of and had feared the cross-collaterization thing...But I was hoping it would slide through before they could figure it out. It is a huge pain to switch bank accounts for IRS and state tax payment. Luckily, only $200 of it was actually mine because $100 was theirs from an overdraft so not a 100% loss. I may get it back but I am thinking no. Whatever, I am BK'ing 10k worth of debt on them so for $200 no big deal I suppose. My new bank is a small credit union and I owe them nothing so we are good.

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                #8
                Originally posted by alibaba View Post
                Yeah I was aware of and had feared the cross-collaterization thing...But I was hoping it would slide through before they could figure it out. It is a huge pain to switch bank accounts for IRS and state tax payment. Luckily, only $200 of it was actually mine because $100 was theirs from an overdraft so not a 100% loss. I may get it back but I am thinking no. Whatever, I am BK'ing 10k worth of debt on them so for $200 no big deal I suppose. My new bank is a small credit union and I owe them nothing so we are good.
                Right! I guess while a pain, as you said, $200 in the great scheme of things...right?!?!

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