Just one question: An account cannot be seized or levied without a judgement, right? I don't owe money where I bank, and I'm hoping to be able to file C7 before any legal action is so much as threatened. I've considered taking my name off the account to protect it (as it is jointly owned, by both me and my husband, who won't be filing with me), but I don't want to do anything that would look suspicious in the eyes of the trustee. I'm just concerned about it being seized.
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What becomes of your bank account during bankruptcy?
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Originally posted by Guest123 View PostWe closed our accounts and opened a new one that had no ties to any of our debts.Filed No Asset Chp 7 BK: January 2010
Discharged: August 2010
A life lesson well learned.
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Originally posted by Guest123 View PostWe closed our accounts and opened a new one that had no ties to any of our debts.
Since then, and also of course because of my BK, I've become super cautious. I will never have a bank account (well a significant one anyway) where I have a loan. Then, with certain people, I will go out of my way to pay by money order, I feel the less information I'm handing them the better.
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Originally posted by lotsahats View PostJust one question: An account cannot be seized or levied without a judgement, right? I don't owe money where I bank, and I'm hoping to be able to file C7 before any legal action is so much as threatened. I've considered taking my name off the account to protect it (as it is jointly owned, by both me and my husband, who won't be filing with me), but I don't want to do anything that would look suspicious in the eyes of the trustee. I'm just concerned about it being seized.
Taking your name off the account could be considered a transfer to your husband. Better for him to open a new account in his name only and spend the money in the joint account to pay your living expense until it is empty. Be sure to close it once it is empty so account fees don't cause an overdraft.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!
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Originally posted by LadyInTheRed View PostRight, a creditor needs to get a judgment before it can levy your account.
Taking your name off the account could be considered a transfer to your husband. Better for him to open a new account in his name only and spend the money in the joint account to pay your living expense until it is empty. Be sure to close it once it is empty so account fees don't cause an overdraft.
So, if we take the steps you suggest, do you think the trustee would understand why we did it? Because I was looking over the Statement of Affairs paperwork, and one of the questions specifically asks about accounts that have been closed. You don't think that would appear suspicious?Filed Chapter 7: March 19, 2012
Discharged! June 28, 2012
Closed! August 8, 2012
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Originally posted by lotsahats View PostThank you, Lady.
So, if we take the steps you suggest, do you think the trustee would understand why we did it? Because I was looking over the Statement of Affairs paperwork, and one of the questions specifically asks about accounts that have been closed. You don't think that would appear suspicious?Last edited by Freddy03; 09-01-2011, 08:14 AM."I DECLARE BANKRUPTCY!" Ch 7 Filed 7/15/11 * 3 Minute 341 8/19/11 * Discharged 10/20/11
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The reason that question is on the statement of financial affairs is to make sure you aren't hiding any assets. If you close an account with a significant balance, the trustee will want to know what you did with the money to make sure you didn't hide it under the mattress without reporting it as an asset.
I closed a checking account a month before filing for reasons that had nothing to do with creditors or my BK. The trustee never asked about it.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!
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Originally posted by LadyInTheRed View PostThe reason that question is on the statement of financial affairs is to make sure you aren't hiding any assets. If you close an account with a significant balance, the trustee will want to know what you did with the money to make sure you didn't hide it under the mattress without reporting it as an asset.
I closed a checking account a month before filing for reasons that had nothing to do with creditors or my BK. The trustee never asked about it.
I understand now, though. Thanks for your input (and you, also, Freddy).Filed Chapter 7: March 19, 2012
Discharged! June 28, 2012
Closed! August 8, 2012
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I had 3 accounts when I filed, 1) because the credit union wouldn't close it because I owed them money, 2) Just for internet payments for the computer, 3) the one I opened when I moved all my money from the credit union prior to filing the bk. The trustee didn't even blink.
I believe they realize people will protect the little bit they have when they fnally are forced to file bk.
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Originally posted by lotsahats View PostWhat will become of my checking account? Will I still be able to use it for regular, necessary transactions, like buying groceries, or paying rent? Or will it be (for lack of a better word) seized?Chapter 7 Filed: 07/15/2011, 341 Meeting: 08/24/2011, Report of No Distrubution: 08/27/2011, Discharged: 10/31/2011, Closed: 11/04/2011
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Originally posted by LadyInTheRed View PostTaking your name off the account could be considered a transfer to your husband. Better for him to open a new account in his name only and spend the money in the joint account to pay your living expense until it is empty. Be sure to close it once it is empty so account fees don't cause an overdraft.
When the time comes for me to file, will his new account be considered one of my assets? I know it would be protected from being levied in a judgement, but I wouldn't think that not having my name on an account that I am living off of would stop the trustee from wanting to know about it. They will, after all, need to know about my husband's income. How does that work?Filed Chapter 7: March 19, 2012
Discharged! June 28, 2012
Closed! August 8, 2012
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I have a credit card, LOC,mortgage, checking and savings with Bank of America. When the s**t hit the fan - they froze my line of credit even though I was paying ontime and through a debit. the credit card was chrged off and sold. Then the last judgement holder
took money out of savings (big 1.94 that they got) and caused my checking to be an overdraft. If I didn't cover it it waould have cost me $70 in service fees. This is why I went on a search for bank that my husband could open an account at - no go.
The only place it seems that doesn't pull credit report is a CU 4 miles away - looked at the online app and there is a box for chex systems but nothing else.I have two business accounts not associated with any credit etc but I am out of business -would keeping them be considered fraud?
I never had anything that I didn't cover but the LOC will be included in bankruptcy. Would that be reported to chex systems?
I need an account for auto debits for husband's business. I can't close BOA because of the LOC - the creditor can go in as much as they want until it is closed. Obviously - I must file asap - lawyer is fully retained. It will be a LOOONNNGGG weekend of work but I have to do it.
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