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Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

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DogwoodLynx
Frequent Contributor

Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

I have a friend that is currently waiting for his Ch 7 DC to go through.

He wants to open a savings account with Navy Federal CU (he doesn't have a savings account currently). 

He said he would put $100 in the savings account upon opening. He doesn't have much money so I don't think he has to be concerned about the Trustee wondering why all of a sudden he is making deposits. 

 

Is there any harm in opening one now or should he wait for official discharge? 

 

*I told him about this site so hopefully he joins us!

Siggy updated Feb 16 2023
Chapter 7 BK discharge: 12/19/22
Inquiries: 6/6mo 7/12mo 7/24mo – Latest inquiry: NFCU - Approved 01/23
Financial Goals: Continue to build by wellness business (currently a DBA), heal my credit report with time and good payment history
“You’re never gonna make the shots you don’t take, so you might as well fire away!” – Little Big Town (music group)

Message 1 of 11
10 REPLIES 10
mortimerwereback
Regular Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

I don't think it would neccessarily hurt, since the amount is so small. If your friend is just about to be discharged, the most they'd be gaining by app'ing early is a few months of membership. I believe the minimum to open a savings/membership is $5.00. What about opening the account and funding the rest later on? 

"Only those who dare to fail greatly can ever achieve greatly." -Robert F. Kennedy

Message 2 of 11
DogwoodLynx
Frequent Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

We are aware of the low amount to open it. We just werent sure if the amount mattered much (small amounts). 

 

I will pass along the information to him. I think his goals are to open a savings for now and then when he gets settled move his checking over from a different bank (Wells Fargo, I think). 

 

Eventually after some rebuilding he will try to app for a credit line.

Siggy updated Feb 16 2023
Chapter 7 BK discharge: 12/19/22
Inquiries: 6/6mo 7/12mo 7/24mo – Latest inquiry: NFCU - Approved 01/23
Financial Goals: Continue to build by wellness business (currently a DBA), heal my credit report with time and good payment history
“You’re never gonna make the shots you don’t take, so you might as well fire away!” – Little Big Town (music group)

Message 3 of 11
mortimerwereback
Regular Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)


@DogwoodLynx wrote:

We are aware of the low amount to open it. We just werent sure if the amount mattered much (small amounts). 

 

I will pass along the information to him. I think his goals are to open a savings for now and then when he gets settled move his checking over from a different bank (Wells Fargo, I think). 

 

Eventually after some rebuilding he will try to app for a credit line.


Yup completely understand. In a way, your friend is doing what I did. The only difference being I knew months before filing that things were moving toward a bk and that it might be prudent/beneficial to open a Navy account (for after my bk) and so I did. Little did I know at the time, that it'd make THE difference in my rebuild. I've all three Navy cards, decent starting limits which will only grow, and those same cards helped me to app and be approved for other prime cards. I feel super fortunate to have been able to rebuild in the manner I have, with Navy's help. Smiley Happy

"Only those who dare to fail greatly can ever achieve greatly." -Robert F. Kennedy

Message 4 of 11
despritfreya
Frequent Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

Your friend's Chapter 7 Trustee does not care about a new bank account.  Nor does he/she care amount money placed into the new account so long as those funds were not in existence on the day the case was filed or were not from the sale of an asset that was owned on the day the case was filed.

 

With only a few exceptions, the Chapter 7 Trustee has no interest in post petition assets or bank accounts.

 

Des.

Message 5 of 11
DogwoodLynx
Frequent Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)


@mortimerwereback wrote:

@DogwoodLynx wrote:

We are aware of the low amount to open it. We just werent sure if the amount mattered much (small amounts). 

 

I will pass along the information to him. I think his goals are to open a savings for now and then when he gets settled move his checking over from a different bank (Wells Fargo, I think). 

 

Eventually after some rebuilding he will try to app for a credit line.


Yup completely understand. In a way, your friend is doing what I did. The only difference being I knew months before filing that things were moving toward a bk and that it might be prudent/beneficial to open a Navy account (for after my bk) and so I did. Little did I know at the time, that it'd make THE difference in my rebuild. I've all three Navy cards, decent starting limits which will only grow, and those same cards helped me to app and be approved for other prime cards. I feel super fortunate to have been able to rebuild in the manner I have, with Navy's help. Smiley Happy


Awesome! Great job and thanks for the data points! 

Siggy updated Feb 16 2023
Chapter 7 BK discharge: 12/19/22
Inquiries: 6/6mo 7/12mo 7/24mo – Latest inquiry: NFCU - Approved 01/23
Financial Goals: Continue to build by wellness business (currently a DBA), heal my credit report with time and good payment history
“You’re never gonna make the shots you don’t take, so you might as well fire away!” – Little Big Town (music group)

Message 6 of 11
DogwoodLynx
Frequent Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)


@despritfreya wrote:

Your friend's Chapter 7 Trustee does not care about a new bank account.  Nor does he/she care amount money placed into the new account so long as those funds were not in existence on the day the case was filed or were not from the sale of an asset that was owned on the day the case was filed.

 

With only a few exceptions, the Chapter 7 Trustee has no interest in post petition assets or bank accounts.

 

Des.


Very good. I will tell him. The funds are from a job he has currently. Thanks!

Siggy updated Feb 16 2023
Chapter 7 BK discharge: 12/19/22
Inquiries: 6/6mo 7/12mo 7/24mo – Latest inquiry: NFCU - Approved 01/23
Financial Goals: Continue to build by wellness business (currently a DBA), heal my credit report with time and good payment history
“You’re never gonna make the shots you don’t take, so you might as well fire away!” – Little Big Town (music group)

Message 7 of 11
Pway
Valued Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

I agree with all posters.  I opened a new checking and savings before discharge, no issues.  

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 8 of 11
SUPERSQUID
Valued Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)


@DogwoodLynx wrote:

I have a friend that is currently waiting for his Ch 7 DC to go through.

He wants to open a savings account with Navy Federal CU (he doesn't have a savings account currently). 

He said he would put $100 in the savings account upon opening. He doesn't have much money so I don't think he has to be concerned about the Trustee wondering why all of a sudden he is making deposits. 

 

Is there any harm in opening one now or should he wait for official discharge? 

 

*I told him about this site so hopefully he joins us!


I opened a checking and a savings with navy fed 6 months post bk7, 15 bucks in each. the free checking has no minimum required balance and comes with free renewal checks for life and an atm card. the only rule that im aware of with the free checking is you have to use a minimum of 1 check per year. Why not go small and open a checking savings with 15 or 20 each?

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Message 9 of 11
DogwoodLynx
Frequent Contributor

Re: Opening a savings account while in Ch7 BK before DC (asking for a friend lol)

Just wanted to update that both myself and my buddy opened up accounts at Navy Federal. We are both post 341 meeting but not discharged yet. 

 

Both got checking, savings, money market savings - all free to open with no minimum required. 

Siggy updated Feb 16 2023
Chapter 7 BK discharge: 12/19/22
Inquiries: 6/6mo 7/12mo 7/24mo – Latest inquiry: NFCU - Approved 01/23
Financial Goals: Continue to build by wellness business (currently a DBA), heal my credit report with time and good payment history
“You’re never gonna make the shots you don’t take, so you might as well fire away!” – Little Big Town (music group)

Message 10 of 11
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