Who can take money out of bank account?

[adviceplease]

So I understand that if you have an account with places like Bank of America and default on credit cards through them they will take the money out of your checking. I have a credit union and I have my mortgage, 2nd mort, car loan, and visa with $700 balance, all of which are pretty much caught up or will be when I file. We are going to keep all of the above, the CC is already closed but has a balance left.

So when we file are they going to take the $700 out our account (car loan will be paid off before)?

Also, can any other CC just take the money out of our account without taking you to court?

My husbands check is direct deposited into this account so I need to know if it is safe or not since we have started defaulting on all out CC's except the one with the bank. If we need to open an account at a bank that is not associated with any CC's will they let us with our now bad credit and can the companies come after that?

Thanks.

[backtoschool]

So I understand that if you have an account with places like Bank of America and default on credit cards through them they will take the money out of your checking. I have a credit union and I have my mortgage, 2nd mort, car loan, and visa with $700 balance, all of which are pretty much caught up or will be when I file. We are going to keep all of the above, the CC is already closed but has a balance left.

So when we file are they going to take the $700 out our account (car loan will be paid off before)?

Also, can any other CC just take the money out of our account without taking you to court?

My husbands check is direct deposited into this account so I need to know if it is safe or not since we have started defaulting on all out CC's except the one with the bank. If we need to open an account at a bank that is not associated with any CC's will they let us with our now bad credit and can the companies come after that?

Thanks.

Bill Collectors have to get a judgment to come after your bank account. So if you open a new account at a place where you do not owe any unpaid credit balances, your account will be safe until you get a judgment against you and a bill collector tries to garnish the account.

Every bank is different in regards to cross collateral agreements. All credit unions have them, but some banks do not (chase doesn't). The CU will try to take the $700 out of your account if you do not pay it. Also, they will not let you close your account until ALL their unpaid balances are paid.

[AngelinaCatHub]

OK, to make this simpler, the other banks cannot raid your checking account. However, you are paying that credit card and not the others. It is a small balance but "could" be held as a preferential payment. If you reaffirm that account that will allow you to pay it. It is a small balance so probably nothing would come of it.

We reaffirmed our Over Draft protection and car payment with our CU. 'Hub

[adviceplease]

The payment is $17 a month and it was not suppose to be open at all but the charges came out after it should have been closed. I meet with the lawyer hopefully at the end of the week but I was concerned that the other CC's will attack our account.

This visa is attached to my husbands account. We have a mortgage together but separate checking/savings. If I have the money sent to my account through direct deposit will that stop them? The stupid thing is it is only a $700 balance but if they take it in one chunk it would hurt. Lets say they take it, then will they release my account?

[debtprison]

It sounds as if you would be far better off getting another account at a unaffiliated institution. Why worry about all this? Keep the existing account but have your husband's direct deposits go there.

[adviceplease]

It is really hard to change a direct deposit and my husbands work because it is a huge company and does not have the headquarters really close. I have my account attached to his to transfer money back and forth, the credit card is in his name only. If I go in at midnight when his check goes in and move it into my account can they take it from there?

[TrailerTrash]

Here is the problem, any account that you have used to pay any creditor you owe money to they can claim you authorized them to make a payment and debit or do an ACH debit from your account. It is extremely difficult to prove you didn't authorize the transaction and by the time you find out the money is long gone.

This post seems to cover what I am trying to say:

http://www.bkforum.com/showthread.php?t=29003&highlight=debit

There are many posts on here of creditors going along and making withdrawls out of your account. It might be a hassel to change banks, but it's a lot cheaper than finding out your account has just been raided and your broke.

[adviceplease]

I have the one $700 purchase from 7/31 that is on a bank visa. I think we will have to keep this debt because I found this info online:

Bankruptcy does not get rid of all debts. You are still responsible for:


•Recent large purchases of more than $550 for luxury goods bought
within 90 days of filing

So if I am going to be responsible for this can I just get a new account at our bank and have them do a transfer from my husbands current checking to this account? I am not so much worried about the CU is going to take their $700 back compared to the other CC's taking unauthorized money from my account. I looked into other banks but most of them are either affiliated with my credit cards or have a fee. My CU is not associated with anyone.

[BigJohn]

What was the $700 purchase for?
Have you already spoken to a lawyer?

[adviceplease]

Well it is a long story...lol.

Hubby is a musician that use to play on the weekends but has not in many years due to getting a job in a factory. We sold most of his musical equipment on craigslist years ago and his old band wanted him to work with them on the weekends at local bars (or so they said it never worked out).

In Dec we went online and ordered a custom guitar for $725, it went back ordered so we cancelled it....or so we thought.

So forward to June and we are doing a debt consolidation through our credit union for the accounts that we have with them and a forbearance on our home (before we figured out that even the small amount we were saving would not be enough and we had to file BK). We signed the papers for the consolidation and for some reason the bank zeroed out the CC but did not close it right away. Well I guess the guitar order was not canceled and they have been trying to authorize the CC once the back order came in the kept trying to authorized the maxed out card and when the bank zeroed it out it cleared and we did not know it happened until it showed up at our door.

So now the CU is ticked off and does not want to do forbearance, I call and explain and they go ahead with it but close the CC down with the balance on it as long as we make the monthly payments. So I figure since it is a luxury item we can not put it in the BK and the company will not take it back because it is custom. I am worried the the CU is going to take the balance out of our account though.

I forgot about this debt in my initial consult but I will tell the lawyer when I go to retain and I have added it in as an asset (depreciated value since it is now used) into my asset list and hopefully can exempt is as a tool of trade. I have no problem paying the monthly payments of $17 on this but I am afraid that if I do the other CC are going to cry favoritism.