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Any flexibility in timing of closing bank accounts in chapter 11
charsetndows-1252
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) in that closing accounts must take place on the filing date, or can individual DIP allow checks to clear and close in a few days?
What about a joint account where debtor is separated from spouse, spouse lives out of country, and spouse uses that account? Must it be closed, or can DIP simply take his name off the joint account?
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
charsetndows-1252
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 WallachGladstone Michel Weisberg Willner & Sloane, ALC4551 Glencoe Avenue, Suite 300Marina del Rey CA 90292(310) 821-9000www.gladstonemichel.com
On Feb 2, 2013, at 3:49 PM, Holly Roark wrote:
The post was migrated from Yahoo.
Is the UST strict in LA down town (or practical) in that closing
accounts must take place on the filing date, or can individual DIP allow
checks to clear and close in a few days?
What about a joint account where debtor is separated from spouse, spouse
lives out of country, and spouse uses that account? Must it be closed, or
can DIP simply take his name off the joint account?
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
Is the UST strict in LA down town (or practical) inthat closing accountsIPallow 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
The post was migrated from Yahoo.