Freezing Bank Accounts

[beachymama]

I understand about wages, but what about money in my bank account from child support.

My child support is direct deposited, I think I can get it sent as a check, but maybe not.

My paycheck is direct deposited, I think I can get it sent as a check in the mail too.

Should I just remove whatever I have in the bank (but this looks bad in the bankruptcy) to avoid having my bank account frozen?

Even if I change accounts, won't the creditor freeze whatever bank accounts I have?

The BK lawyer wants bank statements from the last 90 days. If I remove some money that I have in my account (money I have been saving to either pay to modify my home loan or get a new place first/last/security) and then file after that is not showing up, will I be OK to file without it looking like I am hiding money?

[2Bshinyandnew]

I understand about wages, but what about money in my bank account from child support.

My child support is direct deposited, I think I can get it sent as a check, but maybe not.

My paycheck is direct deposited, I think I can get it sent as a check in the mail too.

Should I just remove whatever I have in the bank (but this looks bad in the bankruptcy) to avoid having my bank account frozen?

Even if I change accounts, won't the creditor freeze whatever bank accounts I have?

The BK lawyer wants bank statements from the last 90 days. If I remove some money that I have in my account (money I have been saving to either pay to modify my home loan or get a new place first/last/security) and then file after that is not showing up, will I be OK to file without it looking like I am hiding money?

My child support is also direct deposited. My bk attorney advised me last October to open a separate account for child support, so that those funds don't comingle with other funds, and when it comes time to file BK he said he could exempt the entire account, whether there was $5 or $5000. In Florida, Child Support and any money intended for support is exempt in bankruptcy. Child Support is exempt outside of bankruptcy as well, up to 6 months worth.

As head of household, earned income that is on deposit in a bank is exempt from the levy of creditors outside of BK. Not so in BK.

If you take out a big chunk of change out now, yes I'm pretty sure it needs to be accounted for, spent on necessities. If you withdraw $3000 in cash on April 1st and then file May 1st, the trustee may be interested.

I say MAY because stuff I thought the trustee would jump on in my ex's BK the trustee didn't bat an eyelash at, like regular $200-$300 ATM withdrawals, sometimes twice a week for the 3 months during filing, a BOA $10,000 line of credit taken out 6 months before filing that my ex never made a single payment on, these events caused not even a raised eyebrow from the trustee (or an objection from BOA ).

You may be better off opening accounts in a brand new bank you have never banked with, maybe even an internet bank, and hold off filing BK until any money that was meant for your mortgage and can't somehow be exempted is spent on necessities. It is perfectly fine to change banks and that will ake it harder to levy and account that can't be found (easily)

[EricaCallaha]

I agree with the above. If someone gets a judgment and decides that they are going to freeze your account, you don't want wages and child support together. I don't really think that they can take your child support, but it is better to be prepared than surprised.

We had a large chunk of money to get rid of 3 days before filing and I had to take out $2K from our checking account. Trustee didn't bat an eye, but I was prepared to tell him what we spent it on. As a precaution, start taking out cash at the ATM and the grocery store. Open another account with a completely different bank. It will at least stall them from finding your new accounts.

Good luck.

[beachymama]

Thank you for the information.

This is a good idea not to comingle the funds. Don't know why I did not think of it before! Does anyone know if applying for a bank account shows up on a credit report? I was thinking of doing Wachovia since that is located on the Island I work on, plus there is one near my house, but I don't want to do it if they check credit and it shows up (or they deny me because of credit). I don't have any bounced checks out there.

[Txgirl]

I am curious to know as well if it shows up on your CR if you open another account?

Do do some of you get paperchecks and use a prepaid debit card?

[EricaCallaha]

My bank accounts have never appeared on my credit report.

[BKINAZ]

My "friend" and his wife are co-signers on his in-laws unused account at the in-laws credit union...that seems to be working well for them.

I to am curious how "other" accounts are found out...I assume it's pretty easy, but how deep do they go?

[2Bshinyandnew]

My "friend" and his wife are co-signers on his in-laws unused account at the in-laws credit union...that seems to be working well for them.

I to am curious how "other" accounts are found out...I assume it's pretty easy, but how deep do they go?

The last checking account I opened shows an inquiry from the bank I opened the account with. It doesn't say why they inquired, just that they inquired.

I wasn't too happy about that. If I were a CA looking at someones credit report I would know that the inquiry *may* be due to opening an account. Just enough info to start someone looking. Ever since I found this out, I have been trying to find a way to open an account without an inquiry showing up.

[BKINAZ]

The last checking account I opened shows an inquiry from the bank I opened the account with. It doesn't say why they inquired, just that they inquired.

So you are saying that (inquiry) showed up on your CR? I don't know...I think your (not you, generic "your") only chance is to have someone open an account you are a co-signer on?

Does anyone know...what are some other ways to make house payments? I am just looking ahead, for some reason if someone froze our accounts the money in them would be primarily for a house payment. I don't want to get caught in that timing...

[willbfree]

You can have a family member open the account in their name. You need to make sure it's a family member you trust though since you would have no recourse if they cleaned out the account.

We just kept the payroll checks uncashed until it was time to make the mortgage payment. Then cashed the payroll check for cash. We then took the cash directly to the bank where the mortgage is held and paid it. If your mortgage payment is not local then purchase a postal money order for the amount and send it in by mail. That way you don't have to worry about your mortgage payment being frozen and you control how the cash is spent. Important to note here is you need to be able to account for all that cash to the trustee. So keep a record of how the money is spent.

[Txgirl]

BKINAZ- I was thinking of that route too. However my mom is not really willing to do that b/c then our ss# would be comingled (!). My sister is in her mid 20's and I just cant' ask her. And then there is my inlaws and they are barred from ever opening an account with anyone! LOL!

We opened minor savings account (with the same bank, we bank with) and there was nothing that showed up.

I also at one time had a savings with ING and as far as I know, nothing showed up there on my credit report.

willbfree- So basically you received paper checks from your employer and cashed them and either paid cash for your bills or money order?

We aren't doing bankruptcy...just worried about a frozen account?

[Txgirl]

Check out this link:

http://consumerist.com/5101305/hard-and-soft-credit-inquiries-and-how-one-hurts-your-credit-score

[BKINAZ]

lol Tx we might be related...I don't have anyone else we would trust except for my in-laws. Although my brother would be fine, but he is in a bad situation as well.

I think we will start doing the pay in person route for our house.

[willbfree]

Txgirl yes that's what we did on the advice of our atty. So all bills were paid with cash or with postal money orders. DH just changed his payroll info to go back to direct deposit yesterday since we filed bk on Monday. It's SO nice to be able to use a checking account again and have direct deposit. The simple things you take for granted. No more standing in line at the post office to purchase money orders for me.

Thanks for that link. It was invaluable. We had plans to open a WF checking account after the bk process is done. I think now we will wait six months to a year before doing so. Time to work on fixing and boosting our FICO score before we open any new accounts especially when they are considered as hard pulls.

[Txgirl]

Again y'all are great! Like I said before I frequent another board and they are very judgemental and condisending (sp?) on that board.

BKINAZ- How funny! My inlaws have horrible credit. With collections calling them left and right and nothing has really happened to them!

willbfree- Was it a pain to do it? I mean I am sure it was, but I am sure you got used to it too? Did you do the paperchecks and pay in cash/money order just in case your account was frozen by the creditors?

I bank with Wellsfargo, it's alright. Nothing special! I did get a great CC with 3.75% interest rate.

I am looking at a local credit union. I need to call and see if they do hard pulls or soft pulls. If they do soft pulls we may switch. (I had to look up the difference, but with soft pulls it's only visible to you as well---so those collections agencies don't know.)

My husband is so passive and tells me I need to get stressing over this so much. I am 14weeks pregnant and already have contractions (from all of this).

Here is what I think I am going to work on:
1.) Writing a Cease and Desist letter to the collections agency to handle everything via mail.
2.) Write a letter to the Original Creditor trying to work out some agreement.

That way I have it all in writing. Sending it certified of course.

BTW...I started another thread asking how long it usually takes for someone to get their account frozen.

Thanks!