Should I worry about Citibank freezing my bank account?

[shelley]

Hello--I am new to the forum. Sorry if this is redundant but I tried to find information on this and I didn't find the exact answer. I filed Chapter 7 no asset bankruptcy (pro se) last week. I was doing some reading today and read somewhere that in some cases, if you have your bank account at a bank with credit cards that you are trying to discharge, they will freeze your account. Does anyone know if Citibank will do this (I'm in California). I have been wanting to change to a credit union anyway, so maybe I should as soon as possible.

If I get a new bank account before my 341 meeting, will the trustee think that I am doing something suspicious? I'm not. I have to be able to pay my rent and utilities somehow.

[justbroke]

You should never keep demand deposit accounts (or timed deposit accounts) in the same bank where you are using credit products! They can use what's known as a "right of offset" (or a setoff) to get at the money in the other accounts! I had this done to me by one of the top 10 banks in the country... after I filed.

You should have already moved your money and any direct deposits to a "neutral" bank.

[shelley]

"You should have already moved your money and any direct deposits to a "neutral" bank."

I didn't know. Are you saying it's too late?

[justbroke]

I don't know if it's too late, as only time will tell. You may want to move your accounts.

[fatal1124]

move to another location

[nokia123]

move to another location

Move to a different bank that you don't have credit with.

[shelley]

I started a new account somewhere else just in case. My main concern was that doing this would make it look to the trustee like I was doing something wrong.

[nokia123]

I started a new account somewhere else just in case. My main concern was that doing this would make it look to the trustee like I was doing something wrong.

From what i can tell, people on the forum seem to do it without any problem from the trustee.

[daylate]

I'd do it- $x is the same in one bank as in another. Especially if it is exempt. And if it is post-filing $ there should be no problem whatsoever.

[debtprison]

As the others have said, yes they usually can take the money and they often will. These banks tend not to care and will do whatever they can get away with. If you need that money, I would get it out of there ASAP and set up a new account somewhere to pay your bills. As a fallback, if you must, you might consider something like a Walmart money card.