Are checking/savings accounts safe....

[Anonymous]

I was reading that it is possible for them to take what money you have in your checking / savings accounts to pay creditors. Is this true?

I've lost my job and what money I do have needs to be saved for housing, food, insurance, and the only income I have is from side jobs. I have about 3k in my bank, but that's only because I just got my taxes today.

Would they be able to take the little money I have?

[daveg38]

Kind of hard to take what isn't there...if you get my drift.

In all seriousness, my attorney told me Monday when I asked him about my checking/savings account that as long as I have under $900, the trustee won't try anything funny. I'm in a "no-asset" Ch7 case. YMMV, of course, so consult with your attorney.

[Anonymous]

I'm a no asset case too, the attorney I spoke with didn't ask about my banking, just cars and houses.

I've been thinking about closing my account all together because I have nothing but problems with WF but don't want it to be a red flag.

[DaveInAZ]

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@Anonymous wrote:
I'm a no asset case too, the attorney I spoke with didn't ask about my banking, just cars and houses.

I've been thinking about closing my account all together because I have nothing but problems with WF but don't want it to be a red flag.

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My attorney in 2010 Ch7 filing advised me to close any bank accounts my creditors had on record, and I'm glad I did. Chase was my largest creditor and their offshore collections in India called several times a day asking me if they could debit my bank account (also was with WF). I chose to not tell them I had closed it, I just told them No, if I had the money I would have paid them. What do you expect when you offshore collections to a third world country? Some must have claimed I told them "sure, go right ahead!" as I got several notices from WF of attempts to debit the closed account and would have incurred hundreds in overdraft fees if I hadn't closed it.

Your Trustee will ask you for copies of bank statements, but just closing WF and opening a new account in itself won't raise a red flag, but removing large amounts in cash would. But then with no income, it's expected you will need cash for necessities, gas, groceries etc. I recommend opening an account at a credit union or small community bank. And yeah, Wells Fargo can be a royal pain, very glad to be rid of them.

If you've alread filed BK they cannot take money from your account, once you have filed any attempt to collect a debt included in BK is illegal.

[StartingOver10]

Call your attorney and speak to him directly about your checking and savings accounts. I think that WF is one of the banks that freezes your account when you file BK and you won't have access to the funds. Ask your attorney and do your research to verify.

[StartingOver10]

Found a couple of links for you to read about WF freezing accounts when you file Bk (different POVs):

EDIT:  Wells Fargo freezes account even if you don't owe WF any money - they said in these articles they do it to protect the Bk estate for the trustee. Definitely talk with your attorney. You might consider moving it to another bank that doesn't freeze your accounts when you file.

http://www.furrcohen.com/Articles-News/Automatic-Bank-Account-Freezes-Can-They-Do-That.shtml

http://nypost.com/2015/06/27/wells-fargos-inconsistent-bankruptcy-program-troubles-bank-in-court/

http://www.americanbar.org/publications/blt/2011/01/keeping_current.html

http://www.thebankruptcysite.org/resources/bankruptcy/filing-bankruptcy/what-do-if-your-accounts-fro...

http://www.alllaw.com/articles/nolo/bankruptcy/bank-accounts-chapter-7.html

[Anonymous]

I had an account in a credit union that I closed the day I filed and moved it to a bank that I researched was BK friendly. I had ~4k in all the closed accounts that were transferred. You're allowed a certain amount in your estate that's exempt and I'd ask your attorney for that amount in your state. I would definitely recommend closing Wells Fargo though and opening another account.

[BearsAndTurtlesRtheBest]

Will Wells Fargo eventually close out your account during the BK process, and if everything goes smoothly are you safe with using your checking account as normal after the discharge?

[Anonymous]

After discharge you're fine. It's just during discharge that they will probably freeze it so for roughly 3 months

[Anonymous]

If you have any loan or CC accounts with the bank where your checking/savings account is they can take money out of your account to pay what you owe them without your permission.

As stated Other places can and will ask if they can debit or ACH payments from your account if they have a record of it. 

And WF will absolutely freeze your account once you file bankruptcy.

Smaller community banks are the say to go. 

I don't advise trying to hide anything, but that said, that 3K is your money, and if you want to withdraw it/spend it etc.. thats your choice. Just remember if you buy somehting of value it has to go on your schedules. If you took it out of your bank account and just saved it in your home for expenses thats fine too, once again when you fill out your schedules you need to be honest, and tell them about however much you have left over. If using Federal exemptions this money can be covered by Wildcard exemtion and or left over homestead exemption. 

Your attorney can be more specific.