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How do I protect my money after I file for bankruptcy in bank accounts

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Anonymous
Not applicable

How do I protect my money after I file for bankruptcy in bank accounts

My lawyer over the phone told me all my bank accounts will be frozen after I file. The problem is that I must have direct deposit to get paid. How do I get direct deposit when I have no unfrozen bank account?

Message 1 of 16
15 REPLIES 15
tussking
Established Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts

Get a new attorney asap ! Not sure what BS he is feeding you...But unless you have big money you're hiding against a bogus BK - NO ACCOUNTS ARE BEING FROZEN.

Discharged BK7 - 7.16.15
Current Fico8 - (8.2022) EX - 744/EQ - 728/TU - 740
Message 2 of 16
Anonymous
Not applicable

Re: How do I protect my money after I file for bankruptcy in bank accounts


@tussking wrote:

Get a new attorney asap ! Not sure what BS he is feeding you...But unless you have big money you're hiding against a bogus BK - NO ACCOUNTS ARE BEING FROZEN.


This is not true. 

 

 

Some banks will freeze your accounts after you file, and before you are discharged. Wells Fargo being the most notorious for this. 

 

I would look into opening an account at a small local bank or credit union that you dont have any previous relationship with. Bankruptcy doesn't have any restrictions on opening new bank accounts. All accounts must be in your schedules as well as current balances.  

 

Do not attempt to hide assessts or money. The trustees get paid to find it, they're good at their jobs and will most likely find it.

 

If you still don't want to open an account with a bank you can open a prepaid credit card such as a greendot card, and have money direct deposited there, again, any money on the card, must be on your schedules. 

 

Good luck 

Message 3 of 16
holmesnmanny
Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts


@Anonymous wrote:

@tussking wrote:

Get a new attorney asap ! Not sure what BS he is feeding you...But unless you have big money you're hiding against a bogus BK - NO ACCOUNTS ARE BEING FROZEN.


This is not true. 

 

 

Some banks will freeze your accounts after you file, and before you are discharged. Wells Fargo being the most notorious for this. 

 

I would look into opening an account at a small local bank or credit union that you dont have any previous relationship with. Bankruptcy doesn't have any restrictions on opening new bank accounts. All accounts must be in your schedules as well as current balances.  

 

Do not attempt to hide assessts or money. The trustees get paid to find it, they're good at their jobs and will most likely find it.

 

If you still don't want to open an account with a bank you can open a prepaid credit card such as a greendot card, and have money direct deposited there, again, any money on the card, must be on your schedules. 

 

Good luck 


Not sure why you think a bank can take action against you in violation of the automatic stay. Yes, a bank can close your account and choose not to do business with you but they can't just freeze your accounts/money. 

 

I also would find another attorney however it's possible you misunderstood what he was saying and that he meant the credit card companies will freeze/close your cards.

Pro Se Chapter 7 discharged July 2015
Message 4 of 16
0REDSOX7
Valued Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts

Suggest you research Wells Fargo and bankruptcy actions and you will then bite your tongue.

Wells Fargo actually won several cases brought upon them by filers of bankruptcy on the grounds that Wells Fargo freezes the money for the trustee and will release when the trustee authorizes that. Our BK lawyer specifically had a page we signed saying that if we banked with Wells Fargo, we needed to move the money or they would freeze it.
BK Discharge 2/11/14

Currently in the garden.
Message 5 of 16
StartingOver10
Moderator Emerita

Re: How do I protect my money after I file for bankruptcy in bank accounts

Agree with the above^^^.  If you bank with Wells Fargo, find another bank or CU before you file bk they will freeze your account even if you don't owe Wells money.

 

It is easy to find the court cases where WF won and one easily found case where the judge ruled against Wells Fargo. However, it hasn't stopped WF from freezing accounts. See these links below

 

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

 

 

Message 6 of 16
holmesnmanny
Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts


@StartingOver10 wrote:

Agree with the above^^^.  If you bank with Wells Fargo, find another bank or CU before you file bk they will freeze your account even if you don't owe Wells money.

 

It is easy to find the court cases where WF won and one easily found case where the judge ruled against Wells Fargo. However, it hasn't stopped WF from freezing accounts. See these links below

 

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

 

 


 

In each and every one of those cases it appears Wells Fargo was found to have violated the automatic stay and was ordered to pay damages. Considering the date of those cases it isn't clear if Wells Fargo is still illegally freezing accounts and illegally seizing funds in violation of the automatic stay. 

 

My point, and I thought it was clear, is that Wells Fargo is in violation of the automatic stay if they do either. I also said "I'm not sure why". I'm sorry if my reply came across as a bit harsh. It wasn't meant to be.

 

Be that as it may, I would suggest making sure you don't have any money in a Wells Fargo account when you file. My guess is Wells Fargo is attempting to punish people for filing, but the negative press I'm sure made this act backfire on them. 

Pro Se Chapter 7 discharged July 2015
Message 7 of 16
Wizdog1
Regular Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts

My accounts including mortgage that was IIB were at Wells Fargo. I have direct deposit and immediately set up auto transfer for my mortgage weekly. I wonder if that was why they didn't freeze. Attorney did advise it could happen. Been with them many years and have never been late or missed payment.

Message 8 of 16
Wizdog1
Regular Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts

I meant to mention they were deducting my mortgage weekly prior to the automatic stay so immediately set up automatic transfer.

Message 9 of 16
despritfreya
Frequent Contributor

Re: How do I protect my money after I file for bankruptcy in bank accounts

In response to holmesnmanny:

 

"In each and every one of those cases it appears Wells Fargo was found to have violated the automatic stay and was ordered to pay damages."

 

I recommend you read

 

http://cdn.ca9.uscourts.gov/datastore/opinions/2014/08/26/12-16087.pdf

 

Overruling the BAP decision (mentioned above), the 9th Cir. Court of Appeals held. . .

 

"In this case, we must decide whether the Debtors can state a claim for a willful violation of 11 U.S.C. § 362(a)(3)— which proscribes “any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate”—based on the operation of Wells Fargo’s administrative pledge. We hold that they cannot state such a claim."

 

"it isn't clear if Wells Fargo is still. . . freezing accounts."

 

Absolutely, "yes it is". WF routinely freezes accounts.

 

"Be that as it may, I would suggest making sure you don't have any money in a Wells Fargo account when you file."

 

My clients are specifically told to get their money out of WF and, personally, based upon WF's actions in dealing with consumers, I would never bank there.

 

Des.

 

Message 10 of 16
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