Can the bank freeze my account while filing for bankruptcy? 14 Answers as of June 02, 2013

My wife and I are about to file for Chapter 7 in CA. I currently bank with Wells Fargo and have heard that they will freeze my account once the filling is in place. Are there any other banks I can go to that will keep my account open so I can continue to pay my utilities, buy food support my family?

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CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Yes.
Answer Applies to: California
Replied: 6/2/2013
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
In addition to freezing-issues with Wells Fargo, Union Bank freezes what's on deposit in accounts at the time of filing. Answer does not address all implications of the question, nor is it legal advice to be relied upon.
Answer Applies to: California
Replied: 8/15/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Wells Fargo is one bank that freezes the account after a bankruptcy is filed. Don't keep money in that bank.
Answer Applies to: California
Replied: 8/5/2011
Judith A. Runyon, Esq. Attorney at Law
Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
Go to a bank where you do not owe any money to and open a bank account. Yes, Wells Fargo freezes account, although it is illegal for them to do so.
Answer Applies to: California
Replied: 8/5/2011
Grasso Law Group
Grasso Law Group | Charles Grasso, Esq.
Bank accounts are not automatically frozen upon filing for bankruptcy. However, if you have money in a particular bank account and also owe that same bank money (example: have a checking account with Wells Fargo and a credit card with Wells Fargo with a balance) then the bank has the right to offset the debt by taking funds from your account. If that is the case for you, then to be safe, open an account with a bank you owe no money to and move your money to that bank before filing for bankruptcy.
Answer Applies to: California
Replied: 8/5/2011
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    Take your money out of Wells Fargo (same as Wachovia) and put it into a bank where you do not owe any money. Wells Fargo is well known for freezing accounts if account holder files for bankruptcy.
    Answer Applies to: California
    Replied: 8/5/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Wells Fargo has been freezing accounts with over $5,000 to "protect the bankruptcy estate" they claim. In a recent court decision it was determined that it was no legal to do that but Wells Fargo is appealing the case and they continue to do it. Wells Fargo froze the account of my client recently for about two weeks. If you report the amount in the account in the bankruptcy petition and exempt it then the Trustee will usually instruct Wells Fargo to release the funds. However, that could keep the account frozen for several weeks (sometimes until after the meeting of creditors). Therefore, it is better to avoid Wells Fargo and not have too much money in any single bank, particularly in Wells Fargo Bank. Also, if you owe money to the bank where the account is held then the bank could be entitled to a set off and take the money to pay the debt. Therefore, it is not a good idea to keep money in an account in a bank to which you owe money because you could lose the money. This applies to all banks and, particularly, to credit unions.
    Answer Applies to: California
    Replied: 8/5/2011
    Lake Forest Bankruptcy
    Lake Forest Bankruptcy | Anerio V. Altman, Esq.
    What happens is that banks will all freeze your assets until the 7 Trustee says it's fine for you to use your money. However, other than Wells Fargo, everyone else does it so fast you never even know it happens. Wells Fargo is a bad bank if you are in BK. All BK attorneys know this. Get away from them. I like Union Bank. I received nothing for this endorsement. :)
    Answer Applies to: California
    Replied: 8/5/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You can go to any other bank and you will be fine. Wells Fargo is the only bank freezing accounts. Credit unions might also take your money if you owe them money.
    Answer Applies to: California
    Replied: 8/5/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Yes. Pretty much any bank OTHER than Wells Fargo will be safe. However, to prevent problems, you should always have as low a balance as possible in your account on the date your bankruptcy case is filed.
    Answer Applies to: California
    Replied: 8/5/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Wells fargo appears to be the only bank that does this. They haven't been doing this lately. If they do freeze your account as long as you have exempted account funds properly you can unfreeze it.
    Answer Applies to: California
    Replied: 8/5/2011
    Kalra Law Firm
    Kalra Law Firm | Madhu Kalra
    Please note that filing of chapter 7 bankruptcy will not result in freezing of the bank account. You can continue to operate your bank account as usual.
    Answer Applies to: California
    Replied: 8/5/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    They will put a "hold" on your accounts if the total deposits exceed $5,000.00. Just take some money out before you file so you will be under the 5K.
    Answer Applies to: California
    Replied: 8/5/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    I have had experience with only Wells Fargo and Union Bank freezing accounts until the trustee tells them in writing the trustee has no interest in the money in the account.
    Answer Applies to: California
    Replied: 8/5/2011
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