Bank of America still attempting to suck me dry... (Closing accounts and BK?)

[Diesel73L]

Last month I went online, downloaded all my statements onto a thumb drive, cancelled my automatic payments (or so I thought), changed my number to GV and hunkered down. Citibank was due first and they've been calling my GV 8-10 times a day. Chase was due at the end of the month so they should be starting soon. B of A didn't get the message apparently and STILL debited their $500+ minimum from my account and overdrew me by $300!!!! Of course they won't refund the money (I called from my GV number) but they claim that I didn't correctly cancel the direct debit. They claim that they've changed it in their system-I also called Wells Fargo and they put a stop on any future transactions but can't do anything about this one. What pisses me off the most about this is that I've been trying to horde cash to put down on a car pre-BK and this just took a $300 chunk out

As soon as the WF account is back to current I want to be rid of them since I hear they like to freeze the assets of BK filers anyway. I'll be moving the account to a small local bank that will be totally uninvolved in the BK filing, but I did read a post where someone said they would avoid closing any accounts prior to BK because its a question that trustees usually ask about. I could provide a pretty solid paper trail if need be-I'll be moving less than $2000 out of WF and to this other bank. I'm assuming the only issue with closing accounts before BK is if you can't account for where the money in the account went, correct? So if I print and save statements showing what was removed from the account at time of closing and then show that same amount being deposited at the new bank that should remove any scrutiny, correct?

[AngelinaCatHub]

Last month I went online, downloaded all my statements onto a thumb drive, cancelled my automatic payments (or so I thought), changed my number to GV and hunkered down. Citibank was due first and they've been calling my GV 8-10 times a day. Chase was due at the end of the month so they should be starting soon. B of A didn't get the message apparently and STILL debited their $500+ minimum from my account and overdrew me by $300!!!! Of course they won't refund the money (I called from my GV number) but they claim that I didn't correctly cancel the direct debit. They claim that they've changed it in their system-I also called Wells Fargo and they put a stop on any future transactions but can't do anything about this one. What pisses me off the most about this is that I've been trying to horde cash to put down on a car pre-BK and this just took a $300 chunk out

As soon as the WF account is back to current I want to be rid of them since I hear they like to freeze the assets of BK filers anyway. I'll be moving the account to a small local bank that will be totally uninvolved in the BK filing, but I did read a post where someone said they would avoid closing any accounts prior to BK because its a question that trustees usually ask about. I could provide a pretty solid paper trail if need be-I'll be moving less than $2000 out of WF and to this other bank. I'm assuming the only issue with closing accounts before BK is if you can't account for where the money in the account went, correct? So if I print and save statements showing what was removed from the account at time of closing and then show that same amount being deposited at the new bank that should remove any scrutiny, correct?

No, you must list all banks and assets. You don't have to close any accounts just get the money out. Leave $5 in each. Once you purchase the car that will be your paper trail. Be careful and check your State exemption so the newer car does not become a saleable asset. 'Hub

[Diesel73L]

No, you must list all banks and assets. You don't have to close any accounts just get the money out. Leave $5 in each. Once you purchase the car that will be your paper trail. Be careful and check your State exemption so the newer car does not become a saleable asset. 'Hub

I didn't word that clearly-I know I have to list all banks and assets and fully intend to, I was just saying that the new bank should be a safe place for our money during filing since we have no debts with them. I've heard that WF will freeze your account when they get wind of your filing even if you don't owe them money (which we don't)-my wife has her account at a small local bank but they hold our mortgage, so I don't want to take chances leaving money there either. We're going to "stay and pay" post BK, but ValleYum pointed out that its such a hassle to "unfreeze" an account during BK that it's just not worth the chance that they might freak out and freeze on us. As for the WF account I just worry that if I leave it open with $5 that BoA could direct debit again and now I owe WF another $500 overdraft. Are overdrafts to a bank dischargeable in BK? Finally, we'll be well under exemption amounts with the car. Even with $8-9K down which is our plan the other car is worth almost nothing, and we have no equity in our home to protect. No other assets besides worthless household junk (like toothbrushes-remember that thread? ;) )

[keepmine]

I'd just forget about WF and make the banking move now. The OD is dischargeable in bk.

[df04527]

Yup was going to say the same thing - od's are dischargeable but opening a new account will be an issue down the road as they will mark you in chex system I believe is what they use. So open another now (while your not on chex) and plan to stay there for a good long time. I don't know much about Chex but I know my DD is tagged there and has nothing but problems opening another account.

We were in the nasty middle district florida and we were not asked anything about changing bank accounts or anything like that. We had provided the obligatory bank statements and everything else required by trustee but were not asked anything about the new account. Only how much money was on-hand on the day of filing.

Of course your mileage may vary but middle district florida is notorious for doing things other districts do not normally do -- so i thought i would offer it as food for thought.

[Drazil65]

BOA sucks! We had our joint acct there and took all the money our prior to filing then left it with $9.00 in it until after our 341 meeting on 1/17th. DH went to BOA last week and closed it out. They were all over him wanting "help" him and for him NOT to close the account. Yeah sure now you need us? We had 2 CC's and our 1st mortgage on our rental with BOA as well as a vehicle. We did not want to stay with them period.

I agree with everyone else OD's are dischargable and I would just make sure your automatic payment is shut off, call 10 people if you have to and make sure they have turned it off. Just another one of their games.

[doni49]

I would go so far as sending them a letter CRRR telling them that they are no longer authorized to debit money from your checking acccount.

[bcohen]

If you are planning to file BK, then why on Earth would you repay Wells Fargo for allowing this unauthorized transaction in the first place? The overdraft--as well as any potential negative reporting to Chex Systems--is dischargeable in bankruptcy, so let Wells Fargo eat the loss, or reverse the unauthorized transaction--their choice.

BTW, the fact that Wells Fargo may report you to Chex Systems is not a good reason to pay money that you don't legitimately owe. Simply open a new account at another bank BEFORE Wells Fargo has a chance to report you (typically after the overdraft is unpaid for 60 days) and then being "reported" won't matter. Once you file for Chapter 7, you include the debt to Wells Fargo, which will be discharged as an unsecured creditor. Then you send a copy of the discharge order to Chex Systems, and they will remove you from their file!