Recent Posts in Checking Accounts Category
| January 20, 2010 |
| I have money in the bank what should I do? |
| Posted By Robert Kovacs |
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Leave it there.
An individual filing a chapter 7 bankruptcy case you may be able to exempt up to $11,200 ($22,400 for a married couple) of cash and bank deposits.
If the money is exempt it will not be touched by the bankruptcy court, trustee, or your creditors. Simply put you can keep.
If you are filing a chapter 13 case there is no liquidation of your assets, unless you want there to be, so here again you can keep the money in your bank.
If you have cash and bank deposits that exceed the exemptions, fear not, you may be able to protect some of the non-exempt money by placing it into an IRA or putting a new roof on your home. I strongly encourage you to meet with a lawyer prior to planning any exemption.
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| January 08, 2010 |
| My Bank took money out of my checking account to cover a loan that I had not paid – Can they do this? |
| Posted By Robert Kovacs |
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This is called “Setoff.” A bank has the right to “setoff” one account against another. For example if you have a loan and a checking account (or other account with money on deposit) at the same bank and you stop paying the loan the bank may pay the loan by taking the money out of your checking account. The bank does not have to tell you in advance of doing this.
What to do? How to avoid setoff?
If you are falling behind on loan payments and have a bank account at the same bank. Then simply withdraw your money from the banking account and go to a new bank. Since there is no money in your banking account there can be no setoff.
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