Can I keep my debit card?

[whitekr]

This may be a silly question....but can I keep my debit cards after BK?

[SinkingFast]

If you aren't filing against the bank you have that acct with, you should be able to keep your Debit Card.

We still have ours. It's open and active.

[whitekr]

Uh Oh. I have a chase credit card and my personal and business bank accounts are with Chase Bank. So the BK will affect my bank accounts with chase?

[CATCHMEIFYOUCAN]

Close Account

I would close your account and open up a new account at a different bank, Credit Unions for one will take what they can get if you owe money on their credit cards, if you file BK. If you decide to keep that account, make sure you don't have too much money in that account. After reading many posts they say don't have too much money available - the trustee may take it! And, I had credit cards and loans tied to 2 credit unions that I had Checking and Savings Accts with. One of the credit unions took what monies I had left and automatically applied it to one of their credit cards. I knew that was going to happen - so they only got $5. I also changed my direct deposits in time too. BE CAREFUL !

Catchmeifyoucan

I'm just a consumer, not a lawyer.

[JusticeForAll]

I've heard so many people say that, but I had a WAMU Credit Card included in my BK and I had a bank account with them during and after my BK and they didn't touch it! Prior to joining this forum, I didn't even know they could do that, I thought the Auto-Stay prevented it.

I guess I just got lucky! Once I realized that might happened I beat feet outta there!

[anonymuse]

But don't actually "close" any accounts pre-BK. Stop using them, put the minimum in there to keep it open, but don't actually close the account. (Remember, you are asked that on the schedules.)

[SinkingFast]

It's called Cross Collateralization and it could be in the fine print of any one of your banking agreements with Chase.

If you default against one acct, the bank can draw from another acct.

It doesn't happen to everyone, as JFA just said happened in their case, but it has happened to others that have posted here.

I wouldn't close the accts. Just let them dwindle down to the minimum required to keep the accts open. One of the questions asked in the BK Petition is to disclose any bank accts you've closed during the year previous to filing BK. Closing bank accts can send up red flags with the Trustee.

Open new accts with a different bank. Switch from direct deposit to getting paychecks if you can as well. Stop using checks and switch to Debit Card, Money Orders, and Cashiers checks. Gives you better control over your money the closer you get to BK filing time. Money is instantly gone. You don't have to wait on checks to clear.

[debtisbad]

I opened an account with the bank across the street from Chase. I bk'd on my chase card and opened my account with another. I just did not want to take any chances!!!!!!!!!!

[whitekr]

So the trustee would not think it looks fishy that you opened a new bank account just before filing?

[SinkingFast]

The advice folks were giving when I first joined here was to open a new bank acct the day AFTER filing BK.

You'll want your bank accts dwindled down prior to filing BK anyway. Less cash assets for your attny to have to cover with Exemptions.

The day you file BK sets the BK Estate. Plus too, the notices to creditors won't have gone out and your BK won't be "public record" yet. So you could open a new acct the very next day at a different bank and it wouldn't be a part of your BK.

[whitekr]

What if I just transferred my chase card to a different card? Right now I have good credit, so I can still do that. The Chase would not have a reason to take additonal assets form the account. Would that work?

[chmastal]

What if I just transferred my chase card to a different card? Right now I have good credit, so I can still do that. The Chase would not have a reason to take additonal assets form the account. Would that work?

Balance transfers are another thing you shouldn't be doing right before a BK. If you are filing you should just plain & simple get a new checking account. When I interviewed the lawyer that I plan on retaining that is one of the questions they asked. She even said I need to make sure that I don't have any direct deposits going into the bank I had my previous checking account & also a credit card with. You need to separate the two. Doing a balance transfer right before a BK looks more fishy than opening a new checking account IMHO.

[anonymuse]

I have utilities, mortgage, basically, most of my bills automatically deducted from my checking account. I got my new checking account early so I could get the process rolling to change over all of the automatic payments to the new account. I get paid on the last day of the month and I can't afford to take the chance that my account would be frozen.

[SinkingFast]

Yep, you don't wanna do the balance transfer thing. That too would send up red flags to the Trustee.

The law is 70 days on Cash Advances and Convenience Checks use. $750 for "luxury goods and services". But someone reported recently that they were pegged for an $11K cash advance 110 days prior to filing BK. They are in the process of negotiating that with the Creditor right now.

You're best off to leave everything as is and open a new acct elsewhere. Unless you are prepared to wait 9 months to a year after the transfer, and maintain at least minimum payments for a while, before you file BK.

[NCfellow]

Switch from direct deposit to getting paychecks if you can as well.

Why would I not use direct deposit? I'm filing in a month or so and my employer is offering (for the first time) the option to use direct deposit. They have been mailing my checks to me since my company is out-of-state.