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Opening a checking account during chapter 13?

Regular Contributor

Opening a checking account during chapter 13?

Hello, I was thinking about opening a checking account with BofA. I had credit cards that i listed in my bankruptcy with them but no checking or savings account? If I opened an account with them would they be able to keep the money I put in? Is there a website I can go to get more info? Thanks.
Starting Score: EQ 651, TU 659 & EX 657
Current Score: EQ 670, TU 696 & EX 686
Goal Score: 850
Message 1 of 10
9 REPLIES
Valued Contributor

Re: Opening a checking account during chapter 13?

I would NOT advise going with BofA.

 

Basically, all of the agreements/notices I have seen with them state that they can change the terms at any time, with no reason, with no notification.   Thus, they can empty out your bank accounts to pay the debt.

 

Is it worth taking the chance? 

Message 2 of 10
Regular Contributor

Re: Opening a checking account during chapter 13?

Actually I'm pretty sure that it is illegal to remove funds from an account without authorization....... and while you are in BK, creditors have to cease collection activities anyway.

 

I currently have a BoA account that I opened after settling a CC debt with them - but if you have any concerns, I agree that you should just look at another bank.


Starting Score: 527
Current Score: 679
Goal Score: 800


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Message 3 of 10
Regular Contributor

Re: Opening a checking account during chapter 13?

Thanks for the feedback.
Starting Score: EQ 651, TU 659 & EX 657
Current Score: EQ 670, TU 696 & EX 686
Goal Score: 850
Message 4 of 10
Senior Contributor

Re: Opening a checking account during chapter 13?

BoA cannot take money if they are listed in BK.  However, they probably won't open an account for you either.

 

Once you are in BK, creditors may not collect the debt except as outlined in the BK 13 payment plan.  If 7, then the debt is legally discharged and not owed any longer.

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 5 of 10
Regular Contributor

Re: Opening a checking account during chapter 13?

Thanks for the response Txtjon.

Starting Score: EQ 651, TU 659 & EX 657
Current Score: EQ 670, TU 696 & EX 686
Goal Score: 850
Message 6 of 10
New Contributor

Re: Opening a checking account during chapter 13?

Believe1970 

 

I filed Chap 7 in Sep 09 and opened a checking account with them in October 09.

 

I had a old checking account that had a balance of $760 with them from 2003 that was listed as IIB.

 

I have not had any problems with them taking any funds from my account.

 

Beautifull


Starting Score: 472
Current Score: 3/14/2010 EQ 647 TU 637
Goal Score: 700


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Message 7 of 10
Valued Member

Re: Opening a checking account during chapter 13?

I would also advise against opening an account with BofA in this situation. Your funds will be protected as long as you are still in the Chapter 13 plan. However, if you defaulted for some reason and the Trustee dismissed your case, they might be able to get at your account. So with so many options out there, why take the risk? I would say cut ties and move on somewhere else.
Message 8 of 10
Regular Contributor

Re: Opening a checking account during chapter 13?

Thanks for the response.
Starting Score: EQ 651, TU 659 & EX 657
Current Score: EQ 670, TU 696 & EX 686
Goal Score: 850
Message 9 of 10
Senior Contributor

Re: Opening a checking account during chapter 13?


TigerCat wrote:
I would also advise against opening an account with BofA in this situation. Your funds will be protected as long as you are still in the Chapter 13 plan. However, if you defaulted for some reason and the Trustee dismissed your case, they might be able to get at your account. So with so many options out there, why take the risk? I would say cut ties and move on somewhere else.

 

If your BK gets dismissed mid-cycle, you got bigger problems than if BoA might take a few bucks out of your checking!  Smiley Wink

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 10 of 10