close checking account

[tabasko]

Must I close out my checking account if the bank I use .is one of credit cards that is from that bank?

[HHM]

If you intend on stopping payments "prior" to filing bankruptcy, then yes. Otherwise, the bank may have the option to raid your deposit accounts in the event you miss a payment.

If you plan on making payments on this card up to the time you file BK, then you can "usually" continue using the deposit accounts. The bankruptcy automatic stay prevents them from taking money from your deposit accounts to pay their credit card. However, some banks will "freeze" your deposit accounts when you file BK under the guise of "preserving the funds for the BK estate."

Bottom line, you probably should close the account.

[nerves]

We had issues with a automatic payment to a leasing company taking funds from our business account during the automatic stay. This is something you should be aware of as well. The excuse was they had transferred to another payment company - this happened a few times even after they were contacted after the first and advised they were not to take those funds due to the automatic stay. We filed in Oct and they took funds in Nov, Dec and Jan. Go figure! We finally got all our money back from them but it did create some overdraft charges we had to pay for.