Texas Unemployment-Chase debit card

[houston7]

Greetings. I have searched the forums and couldn't find an answer, so I will ask the question here. I will be filing a chapter 7 in early April. Chase is one of the creditors, as I have 2 cards with them. I am currently collecting unemployment, which, in Texas, is paid by depositing funds into a separate Chase debit card account. Has anybody from Texas had any problems with Chase trying to freeze/yank these funds after filing a chapter 7?

Thanks for your help.

[BK2008]

I am formerly from Texas, and no, I never had a problem with it, but then again, I immediately withdrew the funds as soon as the UI posted. I don't trust the system, and I certainly don't trust Chase to not freeze the account in the event they found out about the BK.

Just pull your funds right away, you should have no worries.

[BKDefender]

houston7:

I can't speak from actual experience with Chase on UI accounts, but I can tell you that the law of setoff, which is what gives Chase the right to setoff money they owe you from your deposits in your bank accounts to pay off money you owe them, does not allow setoff of a post-petition deposit to pay a pre-petition debt.

To make sure they don't setoff your UI account when you file BK, yank everything out of it as soon as it hits the account and make sure the account has $0.00 in it when you file BK. I would time your filing for one or two days after a UI deposit (and your immediate withdrawal) to give Chase bank enough time to get the notice of filing of your BK so they'll not 'accidentally' setoff your account.

--William