Did this happen to anyone else?

[cookie07]

Husband and I filed for Ch7 back in June had our 341 meeting second week in July. Trustee asked for tax paperwork for husbands business as he didn't believe the value of his shares that he has in the business. I just went in to check my bank accounts to see if I need to move money from my husbands account to mine and they are ALL at a zero balance, there was a debit to each one (we have three with the bank) for the balance remaining. We didn't owe the bank we have the accounts with any money, we had no open loans with them, haven't had one for probably 7-8 years and it was paid in full. I'm a little confused as to what is going on and of course the bank is closed and I will have to wait until morning to call.

[Pjmax]

Which bank? Wells Fargo?

[tobee43]

what did was indicated as to where the funds went? usually if you have on line banking you can see where the money went i.e. check, auto payment, etc.

[cookie07]

All it said was debit, the paper that shows who the debit was for may not post until tomorrow when the records update. I thought may of this kind of active was suppose to stop while in bankruptcy? It was a smaller local bank not a national one.

[cookie07]

Get up this morning to check the accounts to see if it was just a bank glitch and the balances are restored, that is until my husband tries to make a withdrawal from the ATM and it tells him that there are insufficient funds. So I log back in and low and behold all balances are back to zero, call the bank, oh there is a garnishment against your account and she tells me who it is. Now I'm mad as hell, that company was informed of the bankruptcy and still issued a request for garnishment. Now I sit waiting for a call back from our attorney so this can get straightened out and we can get our money back...GGRR

[TXskyblue]

For them to garnish you, you must have had a judgment right?

I learned years ago with judgments that if you have a judgment, you should not keep money in the bank period. It's easy for them to take the money regardless of a BK and then have you have to fight to get it back.

Good luck, but I think that money is not going to be accessible for quite some time. You're going to have to have your lawyer fight to get it back.

[cookie07]

He is calling the attorney now, from what I understand the bank has to keep the money in a trust account for 30 days for these kind of reasons, I hope to have this cleared up asap and I then hope to nail the other attorneys butt to the wall. He knew full well that we filed and even if he filed the garnishment papers before we filed he should have filed papers to remove it, other companies had and we received confirmation of it.

[Pizza]

That's pretty bold of a creditor's attorney to execute a bank levy after receiving notice of the bankruptcy filing. Are you certain that all parties of the creditor are listed in your matrix - original creditor, collection agency, attorney...? It is very important that judgment creditors are listed as thoroughly as possible. If so, they are violating the automatic stay (federal law) and could be punished rather harshly.

[cookie07]

I just got off the phone with my attorney and it turns out the the paperwork was not sent to the correct address so they did not get proper notification of the bankruptcy But he said that he left a message, email and faxed a copy of the notice to the attorney and since the garnishment just happened he doesn't see an issue with getting this resolved quickly. Thankfully I had already gone grocery shopping and I have gas in the tank or I would be rolling change, which I may still have to do!

[Pizza]

I'm glad you have your answer. I feel your pain.