Central District Consumer Bankruptcy Attorney's Association

Wells Fargo froze exempted funds in a Ch 7 recently. Despite showing them that it was exempted and threatening contempt charges, they refused to release and cited an Alaska case stating that the 9th Circuit Mwangi was a "narrow reading" and then cited a bunch of other cases such as In re Zavala, 2011 WL 476874 (Bankr. E.D. Cal. 2011; In re Bucchino, 439 B.R. 761 (Bankr. D.N.M. 2010); In re Young, 439 B.R. 211 (Bankr. M.D. Fla. 2010); In re Phillips, 2010 WL 3943730 (Bankr. M.D.N.C. 2010)...and then said that Mwangi is up on appeal. I thought the 9th Circuit had dismissed their appeal request earlier this year?!
Thankfully, Trustee agreed to release part of the funds until the 341a hearing, but it's just annoying that these banks insist on doing this.
Anyway, just thought I'd share, especially for those attorneys who may be new to BK.
Nikki
wrote:
>
> I had it happen in a seven about six weeks ago. It was released after showing them that the money was exempted and threatening a contempt charge.
>
> I just advise clients now to remove the money prior to filing and disclose everything on the S.O.F.A.
>
> Jonathan Leventhal
> Attorney at Law
> 818-347-5800
>
> On Feb 4, 2011, at 8:26 AM, "P L" wrote:
>
>
>
> Wells Fargo continues to freeze bank accounts notwithstanding Mwangi, it just happened in an individual Ch11 case filed as an emergency; no time to move funds.
>
> Peter M. Lively, JD/MBA
> Law Office of Peter M. Lively * Personal Financial Law Center I
> 11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
> Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
> A-Bankruptcy-Attorney.com
> Personal Financial Law Center II - Costa Mesa, CA
>
>
> THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
>
>
> ________________________________
> To: cdcbaa@yahoogroups.com
> Sent: Thu, February 3, 2011 5:44:54 PM
> Subject: [cdcbaa] Any suggestions regarding large bank account at Union Bank?
>
>
>
> I understand from this listserve that, at least prior to the Mwangi case, Union Bank was freezing bank accounts upon learning of a bankruptcy filing. I have a client who has over $20,000 in a Union Bank savings account (the funds are traceable proceeds from a personal injury settlement). I don't know if Union Bank has changed its practice since the Mwangi decision, but just in case they have not, I suggested that the client move the funds somewhere other than Union Bank or Wells Fargo. Unfortunately, client has been having trouble opening an account elsewhere (I believe she is on ChexSystems). Should she withdraw any funds she will need in the next 90 days or so, then keep the balance of the funds at Union Bank and risk an administrative freeze? Any other suggestions?
>

The post was migrated from Yahoo.