bank account before filing

[confusedinVA]

Hello, I read on this forum that you should make sure you have a bank account in good standing before filing for bankruptcy. The problem is that my husband and I owe a bank 500. and can not afford to pay that off. We were hoping to include this in the bk. How important is it that we pay this before we file? Will we be able to open an account after we file?

Thanks

[AMISLANDER]

What kind of account is it?

credit card? Checking? line of credit?

It seems like most of us have stayed with the banks we had prior to filing as to not screw that up...I've heard it's hard to open an account in bk.

I was thinking of switching my bank account because I'm being charged $20 a month maintenance but I have to further investigate this as I may not be able to open one while I'm waiting to close the bk.

Any body else ?

[lrprn]

Since we owed $3500 to our original bank (husband used checking account overdraft protection as a monthly "loan"...sigh....) and this bank also holds our second mortgage, we opened a new checking account at another bank before we filed Ch 13 and left $5 in the old (not supposed to close any accounts close to filing). The $3500 owed to our first bank was non-secured and was listed on our creditors list; we continue to pay the second mortgage ourselves. No problems with our new bank so far - we were able to get a debit card through them as well.

[anonymuse]

Since I am with a credit union for a checking, saving, and HELOC account (which are known to freeze your accounts during bankruptcy), I opened a new checking with WAMU recently--got the debit card/overdraft with no problem; however, this is pre-BK filing. Once I file, I'll be changing my direct deposit of my paycheck to the new account and paying out of that one.

I've seen where people say to get a new account the day after filing so that your credit report doesn't indicate that you have the automatic stay.

[confusedinVA]

It was a checking account. We had a couple of checks bounce and then with all the fees on top we just cant afford to pay it. We tried to start another account but can not because of owing this bank. We also tried a credit union, but because of our credit dont qualify. We cant even get a savings account.

we were planning to list the bank as one of our creditors but if we do that, will we ever be able to start another account?

Thanks so much.

[JeepMom]

You have to beat ChexSystems. I had to have hubby open an account and put my name on it. I haven't tried to open a new account since BK.

[FoolAndHisMoney]

Since I am with a credit union for a checking, saving, and HELOC account (which are known to freeze your accounts during bankruptcy), I opened a new checking with WAMU recently--got the debit card/overdraft with no problem; however, this is pre-BK filing. Once I file, I'll be changing my direct deposit of my paycheck to the new account and paying out of that one.

I've seen where people say to get a new account the day after filing so that your credit report doesn't indicate that you have the automatic stay.

Do they freeze your accounts because they are a creditor or do they just like to freeze your accounts? I thought that was a violation of the automatic stay.

[anonymuse]

I would think they would do it since they are one of my creditors. I have the home equity loan with them, but it's never been late. And I have overdraft protection.

That's a good question about violating the automatic stay though.

[dbleblanc]

After reading this thread I had not even thought about my checking account. My bank was listed on my bk as a creditor (cc) so after reading this I called my lawyer beings my filing was done the day before. I was told to go open a new account with a different bank and close my existing bank as soon as possible. He said it does not happen often but every now and then the bank will zap all money in your account leaving you nothing. You can get this money back but it will take your lawyer to do it and will take a long time. He said the banks know that they can not do this but some try to get away with it any way.

So I have new accounts and am waiting until all my transfers are done before closing which will be done by tomorrow.

Thanks to the person that posted this question because I never even considered my bank accounts when looking for possible problems.

[Naz428]

I filed chapter 7 in February last year in Virginia and did not have a bank account before filing. (I wish I would have known about this site earlier). About a month later I opened a checking account at Bank of America and they waive the monthly fee if you have direct deposit. Most banks waive the fee if you have direct deposit but I was just happy to have an account again.

[LostOne0069]

He said it does not happen often but every now and then the bank will zap all money in your account leaving you nothing. You can get this money back but it will take your lawyer to do it and will take a long time. He said the banks know that they can not do this but some try to get away with it any way.

My credit union did this to me and I hadn't even filed yet... I was behind by about $900 on a credit card that I had/have with them and so they waited until my paycheck was deposited automatically... and then deducted the $900 from my checking account.

It just about made me bounce my rent check and DID force me to move up my bk date... Prior to that I had lowered payement agreements with all but two of my creditors... one being Amex the other being.... yep, you guessed it, the credit union's credit card. With the lowered payemnts, I was hoping to stave off bk for several more months and who knows what could have happened to help me not have to file... but once they took that $900 out of my account, I didn't have the money to pay the lowered payments and all the creditors dropped me out of those plans, putting me back at 30%+ interest rates and huge payments.

Bottom line is... if you owe a credit card or loan at the location where you currently have your bank accounts... get new accounts at a different bank as fast as you possibly can!