Chapter 7 and joint bank account

[bnscarfan29]

What is the name of your state?What is the name of your state? NY


My wife is considering filing Chapter 7 in the next few weeks. We have joint checking and savings, plus she has her own savings account, all with a credit union where she has a credit card that she wants discharged. My question is, can the bank freeze the accounts that are joint, even though I am the primary on the checking and savings accts? Also, we have both our paychecks automatically deposited into the checking account. If they do freeze these accounts, will we be able to access any future deposits that occur after she files? Would it be a good idea to simply remove her from one or both accounts?

Thank you very much.

 

[bigun]

Take NO chances. Close everyone of those accounts NOW. You're about to learn a new word-"set-off".

 

[ablessin]

What is the name of your state?What is the name of your state? NY


My wife is considering filing Chapter 7 in the next few weeks. We have joint checking and savings, plus she has her own savings account, all with a credit union where she has a credit card that she wants discharged. My question is, can the bank freeze the accounts that are joint, even though I am the primary on the checking and savings accts? Also, we have both our paychecks automatically deposited into the checking account. If they do freeze these accounts, will we be able to access any future deposits that occur after she files? Would it be a good idea to simply remove her from one or both accounts?

Thank you very much.

Close the account together. Open a new one with just your name. This way, IF there is a freeze, you will still have access to your bank account and your money.
Is the debt she is filing for all hers, and only hers? Your name is not on any of these credit accounts?
Tread lightly for a while

 

[bnscarfan29]

What exactly is Set-Off? The debts that she is trying to discharge are hers alone. The credit card that she has at this CU is also hers, my name is not on it. The account that we have at this CU was originally mine, but about a year ago I added her and made it joint. Can they still put a freeze on it? Or just part of it?

Thanks again.

 

[bigun]

Set-off means if you default on a debt from that institution they have the right to snaggle any account you may have at that CU to set-off any loss.
Not sure how joint accounts play out but do really want to spend a month or so filing legal motions to find out?

 

[bnscarfan29]

I guess you have a point, I do not want to find out the hard way. Just one more question. Wouldn't it look suspicious if we close these accounts just prior to filing BK? We have an appt with a lawyer on AUG 15th, and we really need to get the ball rolling before the new law takes affect.

Thanks again!

 

[bigun]

Not really. Just disclose the existence of your wife's new bank account.

 

[Ladynred]

Do either of you have any car loans or other secured loans with this credit union ?? CU's have a NASTY habit of cross-collateralizing accounts..meaning the collateral for one loan winds up securing EVERYTHING, including credit cards.

 

[bnscarfan29]

No, no secured loans or car loans. I also have a credit card with them, but it is in good standing, and just has my name on it. Her credit card also only has her name on it. I think what I am gonna do is open an account in just my name, at a different bank, and leave the CU accounts opened, just drain them down by the day we file. Which leads me to another "just one more question". We have our paychecks automatically deposited into these accounts. If they do freeze them, would I have access to additional deposits that occur after that, or can they stay frozen. It just doesn't seem right that funds can continue to roll in, but are then frozen.

Anyway, you guys have been most helpful. And I really appreciate the quick responses.

 

[bigun]

They'll freeze the accounts until the amount owed is recovered.
Change those direct deposits as well.