BK and Bank account.

[TJR70]

Hi,

I am thinking about doing a BK and i've spoke to a lawyer and explained my situation. He told me I should stop my direct deposit and stop paying my paying my payday loans and basically just walk away from the account since I'm going to walk away from my vehicle.

My question is, with stopping my direct deposit and my car and payday loans will be withdrawn and since there is no money in the account the bank will pay and charge me overdraft fee. Now if I walk away and file for a BK will the BK erase what I owe to the bank account? Also does the advice from the lawyer sound like the norm?

[magyar123]

Not only should you stop your direct deposit - but also close your bank account. Get your employer to issue you paper checks and cash them.
Once you completely close your bank account the bank won't be able to pay those pre-authorized withdrawals, but send them back with the note "account closed"

[Andyman]

Yup..close the account and go find another bank and open a new account but only deposit your check or cash into it...nothing else.

[TJR70]

Thanks for the replys.

I have another question, what if the trustee sees that i opened another account a few weeks prior to filing a bankruptcy and basically walking away from another account that money is owed?

[Mi Bankruptcy]

Don't worry about it. They won't ask. If they do. You tell them they were going to continue to try to debit your account. It's like when you stopped paying credit cards. You are opening another bank account just in the event your name is put on the CHEX system. Then it will be difficult to open a account.

[TJR70]

Thanks again for the replys.

I am still a little confused. So I owe money to my credit union, I did a payday loan for 700 just within this week which isnt due until the middle of next month. I really don't have the means to pay it and close the account at this time. I live paycheck to paycheck. Should I just cancel my direct deposit and take my money out and never go back? What will the trustee say if theres over a $1000 in dept with the Credit Union?

[TJR70]

bump for more advice would be appreciated..

[liz417]

Thanks again for the replys.

I am still a little confused. So I owe money to my credit union, I did a payday loan for 700 just within this week which isnt due until the middle of next month. I really don't have the means to pay it and close the account at this time. I live paycheck to paycheck. Should I just cancel my direct deposit and take my money out and never go back? What will the trustee say if theres over a $1000 in dept with the Credit Union?

If you *know* that you are going to file for BK, then yes, walk away (even if you can't close the account right now). All the debt/overdraft fees will be discharged in your BK. If the CU decides to pay out the $$ (although there isn't any $$ in the account), let them! Don't worry so much, just don't waste anymore $$ by paying the PayDay Loans or CCs/vehicle loan. Good Luck!

[TJR70]

Thank you for the reply, I am pretty stressed and nervous about doing a BK and want it over with asap..

[liz417]

Thank you for the reply, I am pretty stressed and nervous about doing a BK and want it over with asap..

We were all *new* to this at one time and we've all felt that anxiety about our pending BK. I think the most stressful part is finally deciding that BK is the only option. So you've taken the 1st steps, congrats. Hang in there!

[TJR70]

Thanks, I will do so, now filling out the papers what pleasure.

[maxfax3]

It only get's better after you decide to do it.. I have contemplated BK for almost 4 years now.. I found this forum a few months back.. After alot of hours of reading I decided I have to do it.. (Plus I was getting sued) After finally deciding I need an attorney for this I met with several and found a great one..
During our first metting all he did was gather my information, tell me where I stand, and asked if I was okay with doing this.. I had no other choice and absolutely no money so I said yes... He informed me to stop paying CC's right now.
Tat was a month ago.. That month of not paying CC's I managed to have enough money saved to pay him, eat, and about $500 surplus (which I can exempt).. My stress level has been next to nothing.. I sign and file tomorrow afternoon... And I'm looking forward to it!

All those years of scratching and stuggling and barely having the money to survive because of paying credit cards.. I could only imagine where I woudl be at now if I woudl have just done this when I first new there was a problem...

[TJR70]

I appreciate all the responses.

My lawyer will be filing my BK this coming Monday and I am still stressed that I owe my credit union money and I walked away from the account and opened a new one at a bank. I know you all told me not to stress but for some reason I am still stressing .

I think, I am most stressed out about is going to the 341 meeting just me and my wife and the trustee ask why haven't you paid anything for the overdrafts and all the money the credit union paid for..

[southernbelle]

Trust me, the Trustee won't ask why you haven't paid anything on the overdrafts. It's assumed that's why you filed BK. I've had to close accounts for the same reason. Just look at it as a business decision and nothing else. You want a fresh start and need to protect your money, so you changed banks....that's it. Just provide any documentation the court asks for and enjoy your Fresh Start at the end. Good Luck.

[kenshirley]

Be glad that you have the option to stop direct deposit. Some of us can't. For example we are federal retirees and you have to have your monies direct deposited.
So we changed bank accounts anyway to hide a little prior to filing on the attorney's recommendation.
Yes it's retirement money and I guess normally cannot be touched however once it's in an account that the creditors have access to and know about~~~
Well it bothered me anyway. I did not want to go to get some money on the first when we get paid and find the account empty.
And we cannot file until March so that we are under the median income.