Bankruptcy

Wells Fargo/Wachovia Bank Is Freezing Bank Accounts Of Bankruptcy Debtors: Get Your Money Out While You Can

By Jonathan Alper

If you file bankruptcy with a checking account at Wells Fargo/Wachovia bank you have a problem. This bank has decided to freeze checking accounts of any customer who files bankruptcy. No, the debtor does not owe the bank or its credit card any money, and the money in the account could be exempt wages, retirement proceeds, or social security. Doesn?t matter; don?t care. If you file bankruptcy your bank account is frozen until the money is released by your bankruptcy trustee. The bank?s position is that they are not violating the bankruptcy stay when the bankruptcy debtor does not owe the bank a debt.

A federal court recently issued an order directing Wells Fargo/Wachovia to stop freezing bankruptcy debtor accounts. The bank is appealing the order and stated it intends to continue freezing the accounts of customers who file bankruptcy. If you are thinking about bankruptcy get your money out of Wachovia/Wells Fargo bank.

Full post as published by Florida Bankruptcy Law on July 29, 2010 (boomark / email).