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!
2 Answers from Attorneys
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.
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
Related Questions & Answers
I have less than $10,000.00 in credit card debt and have chosen bankruptcy. i do not... Asked 11/29/09, 11:04 pm in United States Texas Bankruptcy Law
I lent $11,000 to someone so they could by a car. I have a notarized installment... Asked 11/24/09, 8:51 am in United States Texas Bankruptcy Law
I gave a scrap yard owner in houston $100,000 for the purchase of scrap metal. He... Asked 11/21/09, 1:01 am in United States Texas Bankruptcy Law
In Texas, are stock exempt in chapter 7 bankruptcy? Asked 11/02/09, 1:58 pm in United States Texas Bankruptcy Law
I am 1 payment behind in house payments and have been off work 1 year can i save... Asked 10/28/09, 1:52 pm in United States Texas Bankruptcy Law