Can your lending institution take money from a checking account held with them to repay a loan being declared in a bankruptcy?
Question Details: We are declaring bankruptcy and turned our vehicle over to our bank. They sold it at auction and then proceeded to empty our checking account of all funds with no warning or court order. Our checking account is held by the vehicle lender. Is this legal? I am also a disabled with a heart condition and Crohns disease. Their actions have left me unable to afford my life sustaining medications, and I had to miss an appointment with my doctor since we have no money for the copays.
From your questions I am unclear if you have already filed for bankruptcy or are about to file. Generally under most state laws a creditor has a right of set off, meaning that they can take the money deposited in that insititution for a debt you owe them. If you have filed for bankruptcy already they are likely violating bankruptcy laws by taking any deposits in your bank account for a debt you owe them. If this is the situation I would seek the assistance of a local bankruptcy attorney to determmine if possible sanctions can be issued against the company for violating bankruptcy laws. If you would like further assistance on questions contact us at http://www.socaladvocates.com
