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Wells Fargo Freezing Debtor's Son's Account
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sounds like a real stretch to me. Check your facts. I suspect the father
was really a co-owner of the account. Look at the signature card.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
hresq1
Sent: Wednesday, February 17, 2010 2:12 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Wells Fargo Freezing Debtor's Son's Account
Dear Listmates:
I counseled a Chapter 7 client to empty his Wells Fargo checking and savings
accounts before filing in light of Wells Fargo's penchant for freezing
accounts (and to avoid a possible setoff since my client owed money on a
Wells Fargo Credit card). However, the Debtor's adult son (a non-Debtor) had
his own account at Wells Fargo, funded solely by the adult son's own
earnings. The adult son's account was held in trust for the father - meaning
that if the son died his account would pass directly to his father - but the
father had no control over the account prior to his son's death. Wells Fargo
froze the son's account on the rationale that the son held it in trust for
the father and the father was a Bankruptcy Debtor. Is this permissible under
the Code? Could the bank possibly establish mutuality of debt for the
purpose of setoff? Any guidance would be appreciated.
Harry Rebhuhn
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Message
sounds like a real stretch
to me. Check your facts. I suspect the father was really a co-owner
of the account. Look at the signature card.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
There is a difference between property held in trust for the benefit of X
and a POD account. (Pay on Death) son may have mistitled the account.
Think of our client trust accounts--thats the client's money isn't it?
Margaret Norman,
111 N. Sepulveda Blvd. 355
Manhattan Beach, Ca. 90266
310-376-7873
On Wed, 17 Feb 2010 22:11:40 -0000
"hresq1" wrote:
> Dear Listmates:
> I counseled a Chapter 7 client to empty his Wells Fargo
>checking and savings accounts before filing in light of Wells Fargo's
>penchant for freezing accounts (and to avoid a possible setoff since
>my client owed money on a Wells Fargo Credit card).
> However, the Debtor's adult son (a
>non-Debtor) had his own account at Wells Fargo, funded solely by the
>adult son's own earnings. The adult son's account was held in trust
>for the father - meaning that if the son died his account would pass
>directly to his father - but the father had no control over the
>account prior to his son's death. Wells Fargo froze the son's account
>on the rationale that the son held it in trust for the father and the
>father was a Bankruptcy Debtor. Is this permissible under the Code?
>Could the bank possibly establish mutuality of debt for the purpose
>of setoff? Any guidance would be appreciated.
>
> Harry Rebhuhn
>
Margaret Norman, Attorney
111 N. Sepulveda Blvd. #355
Manhattan Beach, Ca. 90266
310-376-7873
Fax-310-798-9846
WWW:Margeslaw.com
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The post was migrated from Yahoo.
Harry:
Get documents on the account first because clients are notoriously fuzzy
on details. A statement would suffice to see if it is not really a
joint account. If the debtor is merely a beneficiary contingent upon
the son's passing, and that event has not transpired, then the debtor
has no interest in that account. If it is a joint account, then he does
have an interest in it.
If this is a mistake, no one at Wells Fargo Bank does this by hand, it
is likely a computerized transaction based upon a programmed policy
linked to a database. A letter to the manager of the son's branch may
do the trick.
Steve
The post was migrated from Yahoo.
Dear Listmates:
I counseled a Chapter 7 client to empty his Wells Fargo checking and savings accounts before filing in light of Wells Fargo's penchant for freezing accounts (and to avoid a possible setoff since my client owed money on a Wells Fargo Credit card). However, the Debtor's adult son (a non-Debtor) had his own account at Wells Fargo, funded solely by the adult son's own earnings. The adult son's account was held in trust for the father - meaning that if the son died his account would pass directly to his father - but the father had no control over the account prior to his son's death. Wells Fargo froze the son's account on the rationale that the son held it in trust for the father and the father was a Bankruptcy Debtor. Is this permissible under the Code? Could the bank possibly establish mutuality of debt for the purpose of setoff? Any guidance would be appreciated.
Harry Rebhuhn
The post was migrated from Yahoo.