Legal Question in Bankruptcy in Texas

I am considering filing bankruptcy. Will my bank, Wells Fargo, who I don't any money to put an administrative freeze on my checking and savings accounts on the day that I file? Please advise. Thanks!


Asked on 11/30/09, 2:20 pm

2 Answers from Attorneys

Keith Engelke Law Office of S. Keith Engelke

Once a bankruptcy is filed, an automatic stay goes into effect which prevents actions to collect a debt. Well's Fargo would have to get permission from the Bankruptcy Court to freeze your accounts.

Read more
Answered on 12/05/09, 2:35 pm
William D. Weber Weber Law Firm, P.C.

I have read the comments form Mr. Engelke. They are incorrect, at least in the Southern District of Texas, Houston Division.

In the past 4 or 5 years, Wells Fargo has indeed developed an internal policy of freezing bank accounts in Chapter 7 cases that have a certain amount of funds (approx. $4,000 or $5,000). In the case of Calvin, 329 B.R. 589 (Bankr. S.D. Tex. 2005), Judge Bohm (one of our bankruptcy judges) held that this practice was acceptable.

If you have not already filed your case, make sure you consult with qualified counsel to handle the issue. The problem can be easily circumvented if properly dealt with before the case is filed.

William D. Weber

Weber Law Firm

6666 Harwin Drive, Suite 220

Houston, TX 77036-2251

--------------------

(713) 789-3300 Telephone

(713) 893-6004 Fax

(832) 723-7970 Mobile

[email protected] E-Mail

WeberLaw.com Internet

Read more
Answered on 12/07/09, 2:37 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Texas