Are checking/savings accounts safe....

[0REDSOX7]

Our attorney advised us specifically to move any money AWAY from Wells Fargo as they will freeze the assets even if you do not owe them money.

Many banks have what is called a "Set-Off" clause, which is a legal clause that gives a lender the authority to seize a debtor's deposits when they default on a loan.  Granted once you file, the creditor may have to return this money to the trustee, but, this would leave you without your money.  There is no law that says you cannot open and close a new bank account when filing BK, you will just have to disclose it on your petition.

[Anonymous]

Hi All,

Thank you so much for taking your time to reply and advise me. 

I have opened a bank account with TD after some research that looks like they are BK friendly.  I tried BBVA and they denied me due to my credit, I just hope it was a soft hit.  I have to wait 10-14 days to get my card and everything so once that is done then I will definitely be moving everything away from WF.  I may try going into the local branch and seeing if anything can be expedited. 

I have a meeting with an attorney the end of the month and will disclose that I moved banks so hopefully there are no problems and hopefully what little money I do have I can keep. 

Thanks all!!