.jpg)
frozen bank accounts
Not sure what they do with auto deposits. My recent experience has been
with Wells Fargo and Bank of America. In one case , Bank of America
froze the debtor's bank account to try to do a set off pursuant to state
law (which the US Supreme Court stated in In Re Strumpf was not a
violation of the stay pending an MFR). They were listed as a creditor
in this case.
In another case, Wells Fargo froze the debtor's account although they
were NOT even listed as a creditor. They simply said they were putting
a hold on the money for 60 days pursuant to Section 542 and will
unfreeze it when they get a release from the Chapter 7 Trustee. They
said that when they are notified of any bank customer's BK filing, they
will freeze any bank account in the debtor's name that contains at least
$2500 as of the petition date.
Both cases were Chapter 7 cases. I have not had the above happen in
any Chapter 13 case (at least not yet!). No mention or discussion was
made regarding post-petition deposits although these, technically, may
in some instances also be part of the bankruptcy estate. I believe that
their present policy is only to freeze funds on deposit as of the
petition date.
Ray Bulaon
________________________________
The post was migrated from Yahoo.
Per our recent discussion on this topic, I was wondering if this has happened in any Chapter 13 cases, or if it is just Ch. 7s where Wells Fargo and Wash. Mutual have frozen the accounts after the case is filed?
Also, when they do freeze the account, is it only for funds on deposit as of the petition date, or does it stay frozen for any future post petition funds that are deposited? I assume they simply don't allow any more funds to be deposited, but I wonder then what happens with auto-deposits...
***********************************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173
(818)509-1460 (fax)
e-mail: bklawr@bklaw.com
web: http://www.bklaw.com/
************************************************
Confidentiality Note: This e-mail is intended only for the person or
entity to which it is addressed and may contain information that is privileged,
confidential, or otherwise protected from disclosure. Dissemination,
distribution, or copying of this e-mail or the information herein by anyone
other than the intended recipient, or an employee or agent responsible for
delivering the message to the intended recipient, is prohibited. If you
have received this e-mail in error, please notify us immediately at (818)
509-1173 or e-mail us at bklawr@bklaw.com and destroy the
original message and all copies.
Per our recent discussion on this topic, I was
wondering if this has happened in any Chapter 13 cases, or if it is just Ch. 7s
where Wells Fargo and Wash. Mutual have frozen the accounts after the case is
filed?
Also, when they do freeze the account, is it only
for funds on deposit as of the petition date, or does it stay frozen for any
future post petition funds that are deposited? I assume they simply don't
allow any more funds to be deposited, but I wonder then what happens with
auto-deposits...
***********************************************Mark J. MarkusLaw
Office of Mark J. Markus11684 Ventura Blvd. PMB #403Studio City, CA91604-2652(818)509-1173(818)509-1460 (fax)e-mail: bklawr@bklaw.comweb:
The post was migrated from Yahoo.