On the date of filing bankruptcy, the Debtor has checking and savings accounts with Wells Fargo Bank, N.A. The Debtor claimed the Accounts as exempt in his Schedule C filed with the petition. Immediately upon learning of the Debtor’s bankruptcy filing, Wells Fargo Bank placed an administrative freeze (hold) on the debtor’s accounts; they were awaiting directions from the chapter 7 trustee.
Bankruptcy and Checking Accounts with Wells Fargo. If you are considering filing bankruptcy, I recommend that you close all of your bank accounts with Wells Fargo before you file chapter 13 or Chapter 7. I realize that it is a pain to get your payroll to change the direct deposit to a new bank account. However,
Some banks like Wells Fargo have a policy to place an administrative freeze on any account of a newly-filed Chapter 7 debtor with a balance exceeding ,000. Other institutions like Union Bank are even more strict on this issue. One colleague told me about a case where Union Bank had frozen a debtor’s bank account that contained only $16.
However, I have heard of credit card companies freezing bank accounts within their company. Example, a Wells Fargo credit card, would freeze a Wells Fargo bank account. I haven’t ever heard of a credit card company being able to freeze a bank account without going to court, in which you would be served for.
The Middle District of Florida, Tampa Division, upheld Wells Fargo’s practice of freezing bank accounts of Chapter 7 bankruptcy debtors. In re Young, 439 – March 15, 2011 Free Consultation*: (813) 258-2808 Tap Here To Call Us
Here’s what to do if your bank freezes your checking, savings, or other deposit account after you file for bankruptcy, and how to avoid this in the first place. By Carron Nicks It doesn’t happen very often, but if your bank freezes your checking, savings, or other deposit account after you file for bankruptcy, it’s not only inconvenient, it.
The moment that wachovia/wells fargo discover that you have filed for chapter 7 bankruptcy they claim to have the right to "freeze" your bank accounts and await the guidance of the chapter 7 bankruptcy trustee to see if and when they should release those funds back to you.