Can my bank freeze assets in my accounts ifI have filed for bankruptcy?
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Can my bank freeze assets in my accounts ifI have filed for bankruptcy?
I have filed for Chapter 7 bankruptcy. I have 2 credit cards issued by my bank which are included in the bankruptcy. Can this bank freeze the money that is deposited in my accounts?
Asked on August 30, 2011 California
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
Whether a bank temporarily freezes funds in your account has nothing to do with whether you owe them money. In fact, if they DO freeze it because you owe them money, they would be violating the automatic stay.
There is only one bank, to my knowledge, that regularly freezes funds in debtor's accounts when a bankruptcy case is filed and that is Wells Fargo Bank. The reason for this is complicated and has to do with them allegedly protecting the money for the Chapter 7 trustee. There are ways to expedite the "unfreezing" but you need to consult with your bankruptcy attorney if that occurs.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
Whether a bank temporarily freezes funds in your account has nothing to do with whether you owe them money. In fact, if they DO freeze it because you owe them money, they would be violating the automatic stay.
There is only one bank, to my knowledge, that regularly freezes funds in debtor's accounts when a bankruptcy case is filed and that is Wells Fargo Bank. The reason for this is complicated and has to do with them allegedly protecting the money for the Chapter 7 trustee. There are ways to expedite the "unfreezing" but you need to consult with your bankruptcy attorney if that occurs.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
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