topic Re: Bank close checking account due to Bankruptcy in Bankruptcy

Bank close checking account due to Bankruptcy

fungirl2018 — Sun, 29 Jul 2018 20:09:28 GMT

Has any bank ever closed anyones checking account due to them having a credit card with the bank after listing them in a Chapter 7 Bankruptcy?

Re: Bank close checking account due to Bankruptcy

Anonymous — Mon, 30 Jul 2018 21:12:56 GMT

I had a savings account with a credit union who financed a vehicle for me. I know included it on my bk7; which wasn’t late but upside down and they sold the car but there was like $4000 remaining and they wouldn’t let me do any transactions and will be closing my account (which is fine because I had already opened an account with another Credit Union). So, the short answer is they could. If you haven’t discharged yet, I’d be safe and open an account with another place and stop any automatic deposits.

Re: Bank close checking account due to Bankruptcy

fungirl2018 — Mon, 30 Jul 2018 23:48:35 GMT

THANKS!

Re: Bank close checking account due to Bankruptcy

Anonymous — Mon, 30 Jul 2018 23:55:07 GMT

You’re welcome

Re: Bank close checking account due to Bankruptcy

Anonymous — Tue, 31 Jul 2018 16:52:36 GMT

I had a personal loan with a credit union. They did not close my accounts, but they took all the money out of my savings account. Thankfully it wasn't a lot.

I had several credit cards with citibank that were included. I also had a checking and a savings account with Citibank and they did nothing. I still use the accounts.

Re: Bank close checking account due to Bankruptcy

Shooting-For-800 — Wed, 01 Aug 2018 15:33:54 GMT

I am surprised your attorney did not tell you to move your checking account to a bank that you have no debt with.

Actually, I am not surprised. Most BK attorneys suck and are nothing more than paper shufflers with a paralegal.

Credit Unions often have terms that state they can move your money around to cover your debts to them.

Re: Bank close checking account due to Bankruptcy

fungirl2018 — Wed, 01 Aug 2018 16:07:56 GMT

THANKS!

Re: Bank close checking account due to Bankruptcy

Anonymous — Fri, 03 Aug 2018 11:05:32 GMT

@Shooting-For-800 wrote:
I am surprised your attorney did not tell you to move your checking account to a bank that you have no debt with.

Actually, I am not surprised. Most BK attorneys suck and are nothing more than paper shufflers with a paralegal.

Credit Unions often have terms that state they can move your money around to cover your debts to them.

One of the credit unions I had will not let me back in at all. Apparantly it is a rule they have.

Re: Bank close checking account due to Bankruptcy

ptkdude — Sun, 12 Aug 2018 20:26:19 GMT

I had checking/savings/credit card/safety deposit box with Ga's Own Credit Union when I filed my chapter 13 with a 100% plan. My attorney told me to move to a different bank and take everything out of the box. A few months after I filed, the credit union closed my accounts. They never filed a proof of claim for the $900 I owed on the credit card, so they get paid $0.

Re: Bank close checking account due to Bankruptcy

DaveInAZ — Sun, 12 Aug 2018 23:14:37 GMT

@Shooting-For-800 wrote:
I am surprised your attorney did not tell you to move your checking account to a bank that you have no debt with.

Actually, I am not surprised. Most BK attorneys suck and are nothing more than paper shufflers with a paralegal.

Credit Unions often have terms that state they can move your money around to cover your debts to them.

Well, in my 2010 BK7 my attorney advised me to close any current banking accounts and open an account where I not only had no debt but one that none of my creditors would know about. Not only do some credit unions have terms that they can take your funds on deposit with them to cover debt, but creditors can try to take funds from account that you've used to pay them previously. That's not legal after you file BK, but there are tricks around that. Chase was one of my most aggressive creditors, they used offshore collections from India that spoofed their caller ID so I didn't know who was calling. It was always the same, they'd ask if they could charge my past due amount to my Wells Fargo account, which I had closed on my attorney's advice, so I told them "No the account is closed, and I have filed BK". I got a bunch of notices from Wells Fargo of attempts to charge the account, but since it was closed no fees charged - but if I hadn't closed it I would have incurred a bunch of hefty OD fees.

I blamed it to Chase outsourcing collections to a third world country, so what do you expect?, they must have lied and claimed I said yes. But I've read since then that unscrupulous collectors trick you into saying "Yes" to something, like: "Is this Dave in AZ?". When you say "yes" they record that and then transpose that to when they ask "May I charge your bank account for the amount past due?".

So yes, close all banking accounts before filing BK and open a new one where you've never done busines with before.

BTW. the other thing Chase did was mail letters with bold letters on the outside of the envelop saying "We'll settle for $XXX.00". I live in a rural small town with a gossipy mail carrier, so word got around quickly that I was having financial problems. Gee, thanks a bunch, Chase. I've been told that is now illegal.