Legal Question in Bankruptcy in Texas

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

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