Can my bank freeze assets in my accounts if I have filed for bankruptcy?

Question Details:

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 8/30/2011 under Bankruptcy | 178 View(s) | More Legal Topics

Are you an attorney? Sign up to answer this question.

Bankruptcy Law Answers

Mark J. Markus / Mark J. Markus, Law Offices of Answered 8 months ago | Contributor This attorney is licensed in California

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