Checking Account ??

[jtrlm]

Tried to look this up but did not know how to search for it...

We filed Chapter 7, we have a checking and savings account with one bank.
We have no loans or credit cards with that bank only a debit card.
BUT, my hubby's paycheck is direct deposited into that account.
What are the chances the bank will freeze that account?

Thanks!

[StartinOver]

I'm not an expert, but my guess would be pretty unlikely. Unless they receive a garnishment order, that is. And since you've already filed, I think your creditors are prevented from doing anything of that sort while your "automatic stay" for the BK is in place.

I'm sure some of the experts will be along to respond with more specificity if there is any likelihood of your account being frozen that I'm unaware of.

[disconapper]

Tried to look this up but did not know how to search for it...

We filed Chapter 7, we have a checking and savings account with one bank.
We have no loans or credit cards with that bank only a debit card.
BUT, my hubby's paycheck is direct deposited into that account.
What are the chances the bank will freeze that account?

Thanks!

No, they should not freeze your account, especially since you have no credit accounts at the bank. I asked my attorney the exact same question after I filed, his answer was "Absolutely not."

[arteemus37]

I worried about the same thing before we filed...we had two checking accounts with two different banks before we filed, we had a line of credit with one bank (which we'd actually managed to pay down to $1000, from $4000 two years ago!), and when we filed our petition, that account was frozen. Our other bank account is open.

One thing we didn't plan on, however, was that my husband was listed on his mother's checking/savings accounts at the same bank that froze our account. Her accounts were also frozen, my husband & mother-in-law had to go to the bank & remove my husband's name from her account before she was able to write checks or use her debit card again.

[LadyInTheRed]

Wells Fargo has a policy of freezing accounts when somebody files Chap 7 and asking the trustee for further instructions on what to do with the funds. In the 9th Circuit, this was ruled a violation of the automatic stay. But, district courts in other circuits (who don't have to follow a 9th Circuit ruling), including Texas, have ruled differently. If you google "wells fargo bankruptcy freeze", the second result will be a Texas BK attorney's blog discussing the ninth circuit ruling and conflicting rulings. The first result is a blog by another attorney, written before the ruling, that says Union Bank has the same policy as Wells Fargo.

If you already filed and your account hasn't been frozen, you have nothing to worry about.

[DirkDiggler]

Wells Fargo has a policy of freezing accounts when somebody files Chap 7 and asking the trustee for further instructions on what to do with the funds. In the 9th Circuit, this was ruled a violation of the automatic stay. But, district courts in other circuits (who don't have to follow a 9th Circuit ruling), including Texas, have ruled differently. If you google "wells fargo bankruptcy freeze", the second result will be a Texas BK attorney's blog discussing the ninth circuit ruling and conflicting rulings. The first result is a blog by another attorney, written before the ruling, that says Union Bank has the same policy as Wells Fargo.

If you already filed and your account hasn't been frozen, you have nothing to worry about.

Our checking and savings accounts are with a local credit union where we have one auto loan (current, never been late) and an overdraft LOC, which is at a $0 balance and never been late as well....should I move the $ out before I file?

[LadyInTheRed]

Our checking and savings accounts are with a local credit union where we have one auto loan (current, never been late) and an overdraft LOC, which is at a $0 balance and never been late as well....should I move the $ out before I file?

This is a different issue than a bank like Wells Fargo who freezes your account in case the BK trustee wants it. I haven't heard of a credit union doing that, but you could call and ask them if that is their policy.

As far as your situation, check the terms of the auto loan. It likely has a cross collateralization clause that allows them to seize your accounts in the event of default. Filing BK may be considered default. The safest thing to do is to move that money to a credit union or bank where you don't owe any money.

[Goteki45]

Tried to look this up but did not know how to search for it...

We filed Chapter 7, we have a checking and savings account with one bank.
We have no loans or credit cards with that bank only a debit card.
BUT, my hubby's paycheck is direct deposited into that account.
What are the chances the bank will freeze that account?

Thanks!

The chances should be slim to no existent. The bank would have no reason to freeze the account. If a creditor finds out about the account, they will of course file to have those accounts garnished for repayment, but the bank itself shouldn't matter.

[keepmine]

If a creditor finds out about the account, they will of course file to have those accounts garnished for repayment, but the bank itself shouldn't matter.

This isn't correct. The OP has filed for bk. Creditors can do nothing until/unless the trustee deems this an asset case and gives creditors permission to file a proof of claim. If that happens, the unsecured creditors that file a timely proof of claim will get a pro rata share of any assets.
Since the OP has already filed and the account hasn't been frozen I doubt, the CU will take any action.

[jennz1999]

We have our checking account with a bank that we also havev a credit card and our first mortgage with and they did not do anything like freezing our account.

[Goteki45]

This isn't correct. The OP has filed for bk. Creditors can do nothing until/unless the trustee deems this an asset case and gives creditors permission to file a proof of claim. If that happens, the unsecured creditors that file a timely proof of claim will get a pro rata share of any assets.
Since the OP has already filed and the account hasn't been frozen I doubt, the CU will take any action.

My mistake, I misread the question and thought they haven't yet filed for bankruptcy.