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

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.

Comments

[Just Filed Ch13]

is this still happening?

[Jeffgriffin]

I completely relate with you Charles. To get a good opinion of a bankruptcy lawyer is a great option. A good bankruptcy lawyer is familiar with that process. For the most part it is a technical exercises and because of that, I feel, the most important aspect to look for is good communication. You want to make sure whatever bankruptcy lawyer you select treats you with kindness, professionalism, and compassion. This also extends to the office staff of the bankruptcy attorney as well. You need to make sure you feel comfortable contacting them and they properly care for you.

I also think you should consider meeting with at least two bankruptcy attorneys face-to-face to decide which is best for you. Now, you may feel embarrassed or ashamed about your situation, but trust me, a good bankruptcy lawyer has seen just about every situation and is not there to judge you. Bankruptcy attorneys are there to help you.

[bryce]

I plan on challenging this action if/when any of my clients experience this with their account. Truth of the matter is, they are unlawfully keeping money that does not belong to them and are stealing (larceny). If anyone wants to discuss then email me from www.angellbankruptcy.com

[Bryce Angell]

Wow! That is incredible.

Not only is the IRS getting new powers over your bank account, now you can't even trust those you entrust your money with. Unbelievable.

[Russ DeMott]

Useful post. I am warning my clients of this as well. This makes no sense. You would think Wells would have enough on it's hands just stopping all it's losses from buying Wachovia (a total mess).

This anti-consumer attitude speaks volumes about this bank. Go somewhere else with your money.

[Ricky Smith]

This is the case for Chapter 13 also?

[Carlos Rivera]

This apply to Chapter 7 or Chapter 13? Im guessing only Chapter 7 since Chapter 13 is consider a payment plan....

[Charles]

The banks should not put themselves as a law provider, even if they intention is to look after their respective capital.
You should always get an opinion to a lawyer specialized it this matter.