Legal Question in Bankruptcy in District of Columbia

If I have filed Chapter 7 Bankruptcy. Can my credit union (who is included in the bankruptcy) freeze my account were my paycheck is deposited?

Asked on 8/04/10, 12:11 pm

2 Answers from Attorneys

Bill Wood Law Office of William C. Wood, LLC
0 users found helpful
0 attorneys agreed

Yes, depending on the language in your deposit agreement(s). Credit unions frequently cross-collateralize accounts, meaning that if you file for bankruptcy and have credit accounts with the credit union, they would have the right to seize any money that you have on deposit at their institution. I would recommend looking at the language of the written agreement(s) you have with the credit union.

Read more
8/09/10, 12:38 pm
Laura Margulies Laura Margulies & Associates, LLC
0 users found helpful
0 attorneys agreed

Yes, the law allows all banks and credit unions once they learn that a customer has filed bankruptcy to freeze any money they have in the account and apply it to what is owed. You should have changed the direct deposit to another lending institution before you filed.

Read more
8/09/10, 2:46 pm

Related Questions & Answers

More Bankruptcy Law questions and answers in District of Columbia

Looking for something else?

Get Free Legal Advice

88333 active attorneys ready to answer your legal questions today.

Bankruptcy Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Michael E. HendricksonAttorney & Counsellor at LawAlexandria,
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now