Question About banks.....

[BKdinOhio]

We'll we're finally filing within the the couple of weeks most likely. We've found a lawyer that we'll be meeting with next week.

We lucked out as her assistant is a family friend that we knew worked for an atty, just didn't know it was this highly recommended atty from folks @ work who have used her services.

Since my wife is about to have her wages garnished by Citi she went ahead when we stopped in there and went over the fee's and such (very reasonable, only 1100 for it all) and got us a head start on our paper work we'd have to meet with her about anyway. So now I've got some work ahead of me determining how much I'd sell my dresser, and such @ garage sale.

Anyway, enough background lol.

We have 3 accounts with Chase that we'll be Bankrupting. 2 Credit Cards, and 1 HELOC (yes, we've decided to surrender the house, the hazard insurance has gone up every year we've lived here, and our total payment on our 1st Mortgage is now 740 a month! plus about 150 for the HELOC!)

Does anyone know what they do when a customer with other accounts with them files BK? We like banking with Chase, and our local branch has a great manager that will bend over backwards to help a customer.

[backtoschool]

I would definitely not leave money in your accounts in any bank that you are including in your bk. Most credit cards have cross collateral agreements that allow them to take the money in your accounts if you are in default on a credit card.

[klandsb]

Just opened a new bank account today. . Just one more step... I have a overdraft account on my checking account w/the original bank that I owe about $900.00 on that I am planning on including my my bk... Also, my paycheck went there by direct deposit ...I was so nervous that as soon as they found out they would take the money from my next paycheck to pay the overdraft an I would have no money for food or gas !!! Now I have to mail in the form to get my direct deposit changed. Got paid today so hopefully if I get it in the mail tomorrow by my next paycheck in 2 wks it will go to my new acct........whew....one more thing done ...

[DeadManCrawling]

In case it wasn't totally clear from the previous posters:

DO NOT CONTINUE TO HAVE ACCOUNTS WITH THAT BANK!!!

Sorry for yelling, but this is important. A quick scan of these forums will show that others before you have made this mistake and been ambushed.

If you have debts at the bank where you keep your money, they almost certainly have the right to take funds from your checking/saving to pay the other obligations.

It is called cross-collateralization (and other terms).

It means they can and will clean you out to pay the other debts.

Some members of this forum have lost many thousands (one 14k, if I recall right) due to this.

In all you do and the road ahead, good luck.

PS: For valuing our household items, the attorney put a blanket figure of 2k on everything and asked if we had anything of exceptional value, such as jewellery or art, etc. that would alter that suggestion. We did not, but it made it easy to determine value and is standard procedure here. It varies by district.

[BKdinOhio]

We'll if they were going to do that the the CC's then the would have done that by now, it's been well over a year since we quit paying on those. We've still be paying our HELOC with them and our 1st (with another bank we don't have accounts with).

But I'm in agreement, don't want to risk it after we file the BK. since we haven't missed any payments with those.