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Any flexibility in timing of closing bank accounts in=
Regarding your question on the joint account: The banks usually require the account to be completely shut down because the social security numbers are attached.
Regarding your question on the UST: what Jason said and also on the practical end: I have had cases where the banks were dumbfounded by the request and couldn't figure out how to open the account even though they were listed on the approved depository list with the UST, I notified the case analyst what was going on and promised the closing statement and the copy of the DIP check for the 7 day package ASAP. Sometimes I file 3 o4 4 7 Day packages, depending on when the information comes in. That said, The checks that clear the bank post petition need to be listed on the MOR, if the Debtor is using cash, those transactions need to be listed on the MOR also. The Banks that seem to be the most knowledgeable about opening DIP accounts are US Bank and Citibank. The worst is BofA.
Law Office of Catherine Christiansen
17011 Beach Blvd. Ste 900, Huntington Beach, CA 92647
Tel: (714) 375-6651 Fax: (562) 490-8572
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To: cdcbaa@yahoogroups.com
Sent: Sunday, February 3, 2013 8:59 PM
Subject: Re: [cdcbaa] Any flexibility in timing of closing bank accounts in chapter 11
Trustee does not usually act on account closings as such, but it can be one of the facts in support of a motion to dismiss. Note that any check that clears is an unauthorized post petition transfer. If they are large, that may matter, because dip has an obligation to disclose and probably pursue those transfers.
And if your intent is to allow some checks to clear, i.e. the spouse, you should immediately apply for court approval, if there is a reason that benefits the estate or at least does not diminish it.
In a business case, it is a typical first day motion to allow the business accounts to stay open and clear business checks, because that may help preserve the business relationships and the business value. Your situation sounds like it might be different.
Jason
Jason Wallach
Gladstone Michel Weisberg Willner & Sloane, ALC
4551 Glencoe Avenue, Suite 300
Marina del Rey CA 90292
(310) 821-9000
www.gladstonemichel.com
jwallach@gladstonemichel.com
On Feb 2, 2013, at 3:49 PM, Holly Roark wrote:
Is the UST strict in LA down town (or practical) inthat closing accountsmust take placeon the filing date, or can individualDIPallow checks to clear and close in a few days?
What about a joint account where debtor is separated from spouse, spouse lives outof country,and spouse uses that account? Must it be closed, or can DIPsimplytake his name off the jointaccount?
Holly Roark
holly@roarklawoffices.com
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
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