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Checking account money to offset credit card debt
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Interesting. I was unaware of this possibility. Thanks Pat.
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.
Patrick Green
Sent: Wednesday, December 30, 2009 4:19 PM
To: cdcbaa@yahoogroups.com
Cc: 'Amy Clark'
Subject: RE: [cdcbaa] Checking account money to offset credit card debt
I am including the relevant financial code section. The bank can offset
consumer loans, but can only take amounts above $1,000 in the account. They
also required to give certain notices to the customer in a timely fashion,
etc. If the bank did not leave $1,000 in the account after setoff, I would
think it is a violation of the Rosenthal Act as unfair debt collection
procedure. The bank would have to pay attorney fees.
If the facts of your case fits the statute, you should amend Schedule B to
include the debtors cause of action against the bank. If you dont list
it, the bank can use the failure to list as a defense.
KeyCited Citation 864. Setoff for debt; notice; contents; response form;
limitations; exemptions
(a) For the purposes of this section:
(1) Customer means one or more natural persons.
(2) Debt means an interest-bearing obligation or an obligation which by
its terms is payable in installments, which has not been reduced to
judgment, arising from an extension of credit to a natural person primarily
for personal, family, or household purposes, and does not mean a charge for
bank services or a debit for uncollected funds or for an overdraft of an
account imposed by a bank on a deposit account.
(b) A bank is limited in exercising any setoff for a debt claimed to be owed
to the bank by a customer in that a setoff shall not result in an aggregate
balance of less than one thousand dollars ($1,000) as shown on the records
of the bank for all demand deposit accounts maintained by a customer with
the bank or any branch thereof.
(c) Not later than the day following the exercise of any setoff with respect
to a deposit account for any debt claimed to be owed to the bank by a
customer, the bank shall deliver to each customer personally or send by
first-class mail postage prepaid to the address of each customer as shown on
the records of the bank a written notice in at least 10-point type
containing the following:
(1) A statement that the bank has set off a debt or a portion thereof
against the customer's deposit account, identifying the account, and giving
the respective balances before and after the setoff.
(2) A statement identifying the debt set off against the account and giving
the respective balances due before and after the setoff.
(3) A statement that if the customer claims that the debt has been paid or
is not now owing, or that the funds in the deposit account consist of moneys
expressly exempt pursuant to Chapter 4 (commencing with Section 703.010
The post was migrated from Yahoo.
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I am including the relevant financial code section. The bank can offset
consumer loans, but can only take amounts above $1,000 in the account. They
also required to give certain notices to the customer in a timely fashion,
etc. If the bank did not leave $1,000 in the account after setoff, I would
think it is a violation of the Rosenthal Act as unfair debt collection
procedure. The bank would have to pay attorney fees.
If the facts of your case fits the statute, you should amend Schedule B to
include the debtors cause of action against the bank. If you dont list
it, the bank can use the failure to list as a defense.
KeyCited Citation 864. Setoff for debt; notice; contents; response form;
limitations; exemptions
(a) For the purposes of this section:
(1) Customer means one or more natural persons.
(2) Debt means an interest-bearing obligation or an obligation which by
its terms is payable in installments, which has not been reduced to
judgment, arising from an extension of credit to a natural person primarily
for personal, family, or household purposes, and does not mean a charge for
bank services or a debit for uncollected funds or for an overdraft of an
account imposed by a bank on a deposit account.
(b) A bank is limited in exercising any setoff for a debt claimed to be owed
to the bank by a customer in that a setoff shall not result in an aggregate
balance of less than one thousand dollars ($1,000) as shown on the records
of the bank for all demand deposit accounts maintained by a customer with
the bank or any branch thereof.
(c) Not later than the day following the exercise of any setoff with respect
to a deposit account for any debt claimed to be owed to the bank by a
customer, the bank shall deliver to each customer personally or send by
first-class mail postage prepaid to the address of each customer as shown on
the records of the bank a written notice in at least 10-point type
containing the following:
(1) A statement that the bank has set off a debt or a portion thereof
against the customer's deposit account, identifying the account, and giving
the respective balances before and after the setoff.
(2) A statement identifying the debt set off against the account and giving
the respective balances due before and after the setoff.
(3) A statement that if the customer claims that the debt has been paid or
is not now owing, or that the funds in the deposit account consist of moneys
expressly exempt pursuant to Chapter 4 (commencing with Section 703.010
The post was migrated from Yahoo.
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522(f) does not apply and probably not a preference because lien arises when
funds are deposited. I don't see any recovery and any recovery would
certainly cost more than $700. Client is out of luck.
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.
miyun lim
Sent: Tuesday, December 29, 2009 10:15 AM
To: List Serve
Subject: [cdcbaa] Checking account money to offset credit card debt
Dear Listmates,
I have a ch7 client who had a Wells Fargo checking account. The bank had
withdrawn the debtor's entire balance of $700 to offset credit card debt of
same bank. The money was withdrawn before the debtor filed bk. I had
included the bank balance as an exempt asset. Can he request the money back
from the bank or do I need to file a motion to do that?
Teri Lim, Esq.
Law Offices of Miyun Teri Lim
3701 Wilshire Blvd. Ste. 1025
Los Angeles, CA 90010
(213)389-3557(Office)
(323) 927-3623 (Fax)
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Message
522(f) does not apply and
probably not a preference because lien arises when funds are deposited. I
don't see any recovery and any recovery would certainly cost more than
$700. Client is out of luck.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
No
Sent from my iPhone
On Dec 29, 2009, at 10:15 AM, miyun lim wrote:
Dear Listmates,
I have a ch7 client who had a Wells Fargo checking account. The bank had withdrawn the debtor's entire balance of $700 to offset credit card debt of same bank. The money was withdrawn before the debtor filed bk. I had included the bank balance as an exempt asset. Can he request the money back from the bank or do I need to file a motion to do that?
Teri Lim, Esq.
Law Offices of Miyun Teri Lim
3701 Wilshire Blvd. Ste. 1025
Los Angeles, CA 90010
(213)389-3557(Office)
(323) 927-3623 (Fax)
NoSent from my iPhoneOn Dec 29, 2009, at 10:15 AM, miyun lim <terilim@yahoo.com> wrote:
Dear Listmates, I have a ch7 client who had a Wells Fargo checking account. The bank had withdrawn the debtor's entire balance of $700 to offset credit card debt of same bank. The money was withdrawn before the debtor filed bk. I had included the bank balance as an exempt asset. Can he request the money back from the bank or do I need to file a motion to do that? Teri Lim, Esq. Law Offices of Miyun Teri Lim 3701 Wilshire Blvd. Ste. 1025Los Angeles, CA 90010 (213)389-3557(Office) (323) 927-3623 (Fax)
The post was migrated from Yahoo.
Dear Listmates,
I have a ch7 client who had a Wells Fargo checking account. The bank had withdrawn the debtor's entire balance of $700 to offset credit card debt of same bank. The money was withdrawn before the debtor filed bk. I had included the bank balance as an exempt asset. Can he request the money back from the bank or do I need to file a motion to do that?
Law Offices of Miyun Teri Lim
3701 Wilshire Blvd. Ste. 1025
Los Angeles, CA 90010
(213)389-3557(Office) (323) 927-3623 (Fax)
Dear Listmates, I have a ch7 client who had a Wells Fargo checking account. The bank had withdrawn the debtor's entire balance of $700 to offset credit card debt of same bank. The money was withdrawn before the debtor filed bk. I had included the bank balance as an exempt asset. Can he request the money back from the bank or do I need to file a motion to do that? Teri Lim, Esq. Law Offices of Miyun Teri Lim 3701 Wilshire Blvd. Ste. 1025Los Angeles, CA 90010 (213)389-3557(Office) (323) 927-3623 (Fax)
The post was migrated from Yahoo.