Can the bank freeze your money if you file for bankruptcy?

We are currently filing bankruptcy. Our bank holds both our car notes. We planned to originally reaffirm on both cars but after talking with our financial advisor realized it is best to part with the one car. DH had his payroll check going in previously with all to checking a 100 to savings. His work didn't cancel his direct deposit like requested. Long story short a 100 went to the savings and they put a freeze on it. An error in our account puts the checking into NSF status. They covered those checks but charged $30 a piece. Had they not froze that money then it would have transfered and there would be no overdraft. Can they legally freeze our savings during a bankruptcy?

I have a lawyer but they are closed and Monday is usually cases for her so I guessing it will be awhile before I talk with her and it is driving me crazy

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Anonymous

Asked by Anonymous at 4:29 PM on Dec. 27, 2008 in Money & Work

This question is closed and filed in the CafeMom Encyclopedia.
Answers (6)
  • yes they can!!!
    Anonymous

    Answer by Anonymous at 4:30 PM on Dec. 27, 2008

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  • Anon 430 thanks for replying. Can you tell me why they are allowed? I am confused because we are planning to return the car that they linked the account to but they did this before we had a chance to accept or refuse the reaffirmation agreement. I am just confused now on what bankruptcy can and can not stop.

    Anonymous

    Answer by Anonymous at 4:38 PM on Dec. 27, 2008

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  • Bankruptcy means you have NO money (or cash flow). If you have outstanding debts any money you DO have needs to be used to pay those debts, and any assets with a cash value will likely be sold to pay off any outstanding debts. Your lawyer will file the appropriate paperwork, and whatever assets/cash you DO have will be used to pay off your debts FIRST, and any money your earn afterwards will be yours.

    Good luck.
    Anonymous

    Answer by Anonymous at 4:49 PM on Dec. 27, 2008

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  • yes they can.

    as a bank worker, you should always have funds in your checking to cover your purchases & checks, not rely on overdraft protection to cover it. You did not have funds in your checking, you were charged overdraft fees. plain and simple.

    Anonymous

    Answer by Anonymous at 6:22 PM on Dec. 27, 2008

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  • Anon 622 You are missing what I said. We had money in our savings. It is set up that if our checking is short then our savings will transfer the money. Our car is through this bank and is deliquent so they froze our savings. We planned to call and tell them to come get the car but the banks were closed for holidays. When I seen that I had a mistake in the account I called they seen the money but refused to do anything. We still have a 100 in there that they have frozen.

    I did not write checks to bounce on purpose. It was an oversight with the one missing transaction. The problem I have with it is even though I miscalculated the transaction the money should still be there but they are freezing it because of the deliquent car that we are trying to give back to them.

    But soon it will be over and we will just be at the one bank.
    Anonymous

    Answer by Anonymous at 7:55 PM on Dec. 27, 2008

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  • Yes but when we filed it never happened to us because we paid what needed and had no problems ever.
    Anonymous

    Answer by Anonymous at 12:27 AM on Dec. 28, 2008

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