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9th Circuit Case re: Wells Fargo's holds on personal bank accounts postBK
Hello everyone:
In re Mwangi held:
"The bankruptcy court erred when it determined that Wells
Fargo did not exercise control over property of the estate when
it placed its administrative freeze on Appellants account funds.
Appellants have standing to seek sanctions against Wells Fargo
pursuant to 362(k) for willful violation of the stay with
respect to their interest in estate property."
It was a pain, because the BAP has not published the opinion yet, but I used pacer to find the opinion and it is attached.
The opinion is not a strong as we would all like, because it skirts the issue a little. Since exempt property is subject to a sixty day objection period, it holds the account funds are property of the estate. Wells kept the property after the 60 days, so they got smacked.
Wells will now have to decide if they are just going to mail the trustee a check in each case, or just stop the freezes.
dennis
The post was migrated from Yahoo.
I just spoke to Patrick at Wells Fargo's BK department and he assures me they will continue to hold funds while they appeal Mwangi.
Brian McGoldrick
www.sandiegodebtrelief.org
>
> Wells Fargo has often driven me & my clients nuts about this and now....
>
> ...care of www.CBAR.pro publications, I just saw this:
>
> "The Ninth Circuit BAP has just released a case that you may be able to use right away. In re Mwangi, Case No. 09-1408 (9th Cir. B.A.P., June 30, 2010), abstracted on page 82, holds that Wells Fargo's national policy of placing administrative holds on accounts of persons filing a bankruptcy petition violates the automatic stay by exercising control over property of the estate."
>
> Best,
> Nikki
> 818-377-7477
>
The post was migrated from Yahoo.
Wells Fargo has often driven me & my clients nuts about this and now....
...care of www.CBAR.pro publications, I just saw this:
"The Ninth Circuit BAP has just released a case that you may be able to use right away. In re Mwangi, Case No. 09-1408 (9th Cir. B.A.P., June 30, 2010), abstracted on page 82, holds that Wells Fargo's national policy of placing administrative holds on accounts of persons filing a bankruptcy petition violates the automatic stay by exercising control over property of the estate."
Best,
Nikki
818-377-7477
The post was migrated from Yahoo.