Filing and freezing bank accounts

[BKFreedom]

I spoke to a BK attorney and was advised, that upon filing, certain banks will immediately freeze bank accounts immediately.

Anyone ever heard of this or had it happen?

Thank you in advance for any discussion on this.

[frustrated7]

I was about to ask this same question. We met with our attorney today and prepared everything. Our attorney didn't say anything, but one of the papers he gave us that I just read said that in some cases the trustee may go after the bank account the week before you file and the week after you file. But that doesn't make much sense to me, since we used our exemptions to protect our checking account and we had an extra several thousand in exemptions that we did not need to use. Does anyone know anything about this? I drive two hours a day for work and need lots for gas money; it would be very bad if my debit card suddenly stopped working!

[BKFreedom]

what you mean the week before you file? that is new to me.
how can that possibly happen since you are only preparing to file? Are you saying that just the act of talking to an attorney or preparing causes the accounts to be put in risk?

In searching further, I see that WF and BofA trigger freezes almost immediately, while typically the smaller, local banks, and credit unions have not. But, they have full right too.

[cyn5]

This is interesting to me. What is everyone's experience who have already filed? In what cases would the trustee freeze your bank account? Has this ever happened? I have heard about accounts being frozen by banks if say you have a credit card with your bank, they may freeze your checking acct or something like that.

[kathy4530050]

Oh no!

wow! I never knew this was possible. I am self-employed and income comes to me very sporadically. If my bank account is frozen, it may be months before I am able to make another deposit! How would I be able to live??

[ease]

From the website of a lawyer we are interviewing this week.

http://www.boulderbankruptcy.com/10-mistakes-to-avoid.html

[fltoo]

Your bank accounts will not be frozen. But, the trustee will want to see your statement up until day of filing and your account should reflect nominal money. I showed 10 bucks in my account on day of filing.

You might be getting this confused with banks or credit unions that can withdraw money from your active account with them if they have a cross collateralization clause. For example, you have a cc or car loan and your contract reads that they can take money from your account with them if you default on the loan. Best thing to do here is close all accounts, if you can, with the lender with whom you have any loans/credit cards.

I wanted to add that you should have no or very little money in accounts that you cannot exempt when you file. Then there is nothing to freeze or take.

[kathy4530050]

All good advice. And thanks for link, ease--it was helpful.

[BKFreedom]

it looks like this topic is already active in this forum. with more information:

http://www.bkforum.com/showthread.php?t=30175