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Bankruptcy Law/Lenders Rights?
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Question
I am filing bankruptcy on my bank, the same bank that I have my mortgage, savings/checking account and credit card with. I am reaffirming on the mortgage but will file chapter 7 on the credit card. Can the bank legally remove funds from my checking/savings accounts once I file? Can they help themselves to whatever money might be in my account without my knowledge or prior notice?
Thank you, Matthew Spinelli
Generally setoff's prior to filing your bankruptcy case are allowed. A setoff involves the bank reducing the funds in your account based on a claim that you owe them money. The bank may have a right of setoff against your checking account before the filing of your bankruptcy case. Generally the right to setoff is not allowed once a bankruptcy case is filed (automatic stay comes into play). Under certain circumstances the court may allow a setoff after the filing of your bankruptcy case.
http://www.socaladvocates.com
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Answers by Expert:
Norma Duenas - California Bankruptcy Attorney
Expertise
Norma Duenas is a California Bankruptcy Attorney representing clients in Chapter 7 and Chapter 13 consumer bankruptcy cases. Norma Duenas is the founding member of Southern California Law Advocates a consumer bankruptcy law firm. For further information you can visit us at: California Bankruptcy Attorney - Riverside, Los Angeles, & Orange County
Experience
Have filed over 350 consumer bankruptcy cases in Orange County, Los Angeles and Riverside. I have worked previously for Macey and Aleman, the largest consumer bankruptcy firm in the country. Currently I am the owner of Southern California Law Advocates, a bankruptcy law firm with offices in Orange County, Los Angeles and Riverside. Law offices is focused on consumer Chapter 13 and Chapter 7 bankruptcy.
Organizations
California Bar Association
American Bar Association
Riverside Bankruptcy Attorney
Education/Credentials
University of California, Irvine, BA in Criminology, Law and Society
California State University, Los Angeles MS in Criminal Justice
University of San Diego, Law School, JD Cum Laude
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