Will filing chapter 7 empty my checking account??

Anonymous · ‎01-28-2018

I'm considering filing chapter 7, but will doing so mean they can make a claim on any money that comes into my checking account after filing until discharge? If I am not paying credit bills due to filing then I will have extra money in my account and it may look like I can pay.

ptkdude · ‎01-28-2018

That's something you may want to talk to your attorney about.

I will say that my attorney told me that if I had any accounts at Wells Fargo, they (WF) would freeze the account shortly after I file so I was advised to remove all money from that account. I was also told to remove all money from any accounts at credit unions and remove items from my safe deposit box.

shadanat · ‎01-28-2018

Prior to filing bankruptcy, I banked with Navy Federal and BB&T. I didn't owe them any debts that were included in my case and no one touched the money in the accounts. Paychecks were delivered.

I believe with credit unions if you are including them in your case (say you are including a credit card or loan from them) you would be advised to find a checking account elsewhere.

ptkdude · ‎01-28-2018

Yeah, Georgia's Own Credit Union closed my account about 4 months after filing and sent me a check for the balance ($9).

despritfreya · ‎01-29-2018

wrote:
I'm considering filing chapter 7, but will doing so mean they can make a claim on any money that comes into my checking account after filing until discharge?

Who is "they"? What is "any money"?

Your income earned after filing the Chapter 7 belongs to you.

Gifts from friends, family, etc, after filing the Chapter 7 belongs to you.

Things that do not belong to you are some insurance proceeds and settlements resulting from injury prior to filing, inheritances if you became entitled to such either before or within 6 months after filing, divorce/separation property settlements. . and there are a few others.

You need to be specific.

Des.

Anonymous · ‎01-29-2018

wrote:
I'm considering filing chapter 7, but will doing so mean they can make a claim on any money that comes into my checking account after filing until discharge? If I am not paying credit bills due to filing then I will have extra money in my account and it may look like I can pay.

Not usually but if you bank with the same bank you are discharging it's highly suggested to move it somewhere that would not be affected by bankruptcy. You are required to list your bank accounts and balance on the day of filing on your bankruptcy schedules and it is technically not exempt however the trustee usually would not make a claim on it unless its a considerable amount (i had $3k when i filed, no issues)