Can the bank take your money during bankruptcy period without the legal process?
One of my friends filed for Chapter 7 bankruptcy. Two weeks after he filed and received his docket # and the bankruptcy papers from the U.S. Bankruptcy Court, he decided to open a checking account at Bank of America with $900.00 for future attorney expense if any. Two days after the account opened, all the money was gone and it was taken out by Bank of America without any notice. Bank of America is one of the creditors on the Bankruptcy filing paper. Bank of America took his money without going through the legal process or court order and they took laws into its own hands. The question is can the bank take your money during bankruptcy period without the legal process? And can he sue them for stealing his money without going through the legal process. If the bank can take anyone’s money at anytime without legal process, is that mean everyone’s money in the banking system are not safe anymore? Maybe it’s time to put my money under my mattress.
March 24th, 2009 at 7:16 pm
If he already filed for bankruptcy (not just started the process) and had a case number, than they can not take the money and must return it.
If he only started the bankruptcy and had not filed, than he can not get the money back.
Tell him to contact the attorney that handled the bankruptcy for him. They can help him get his money back. Once he does, he needs to take that money and go to a different bank.
March 26th, 2009 at 12:13 am
Hi,
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March 26th, 2009 at 3:26 am
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March 29th, 2009 at 1:08 am
Was he using cash or check? Odds are the check was bad and they closed it out. Or if he had bad history they closed it out and he will be getting a check in the mail.