What should I do?

iVillage Member
Registered: 12-21-2004
What should I do?
6
Mon, 12-19-2005 - 1:11pm

As most of you know I had to file Chapter 7 bankruptcy and I had my first meeting of the creditors last week. My husband was unable to file with me because he had put his vehicle up as collateral on a loan in the 90 days prior to the filing - they said if he filed he would probably lose the truck. Every bill in his name is so far behind - we are honestly sinking - most people feel some sort of burden lifted off their shoulders after they file BK (even though I know the bills were bills that we created)but I can't even feel that relief because I am worried to death about these other bills. He has 3 credit cards that had low limits to begin with that are now showing as discharged. Our phone has been cut off and it is in his name also - so I know that they will be turning him over to a collection agency if they haven't done so already. I guess what my main question is -- if and when the credit cards get garnishments or judgements against him - will they get the money in our checking account? The account has both of our names on the checks - but actually the account is in my name only (it may take some proof to prove that though - I was the only one that signed to open the account - we had the account several years before when reordering checks I just added his name on the checks). We don't have any money anyway - but what should I do about this account? Should I try and get his name off from the checks? I am embarrassed to call the bank at all because I did file Bankrupt even though I'm paying the one loan I owe them. I am so confused, scared and frustrated. I know that this sounds horrible but I just wish that Christmas would be over this year - we can't even afford to pay bills much less buy presents. We both work full time - the problem this year has been my husband has been out of work three times. I guess we were actually living off from credit cards and it has brought us down. I am so use to having credit cards at Christmas and now they are all gone. I am just so depressed that I had to vent.

If anyone here works for a bank or something - please let me know what you think about the checking account. Thanks

iVillage Member
Registered: 03-07-2005
Mon, 12-19-2005 - 3:37pm
I don't work for a bank but my gut reaction would be to open another checking acct in your name if you are able to. It would just protect at least your salary in the event anyone is able to get into your acct. I'd think that if they were to garnish they do it through his employer so the money would already be gone before it even hit your checking account. I'm not sure as I've never personally gone through it--maybe someone will have more solid advice. It'll take some time to recover from your Chp.7 and if I remember you are still fresh off of it so it'll take some time to actually get things back in order. It really will--GL and don't stress about Xmas it'll come and go and it's not about gifts anyway.
iVillage Member
Registered: 12-21-2004
Mon, 12-19-2005 - 6:05pm

Now that I have filed for bankruptcy know one will open a new account for me because they check your credit. I was very careful about cheking with my bank before I filed to be sure that they wouldn't automatically close my account and take the money from it. At that time we thought that both of us would be filing. My bank has held up its end of the agreement and has not closed my account (even though my lawyer thought they would). I guess since I don't owe them any money that I don't plan on repaying and I have had the account for about 15 or 16 years now that they figure I'll do o.k. And it may never even come to the point of any of my husband's creditor's trying to put a hold on the account. I guess that they have to let you know in advance since this is some kind of legal thing -at least I hope we know in advance I may get my guts up and call the bank and ask them this question. But since we live in a small town and I've already embarrassed myself to death with all ths other stuff - I just don't know.

And I agree Christmas isn't about the gifts anyway.

Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Mon, 12-19-2005 - 7:10pm

If the bank records show the acct in your name only, they'd refuse to garnish the acct to the creditor. That happend one time w/ one of DH's accts. We'd paid w/ one of my mom's checks one time and that was the only bank info they had, so they sent in a garnishment to her acct. Her bank didn't honor it b/c they didn't have him on the acct, nor did they have any accts with his name on them. In the event that you have a joint acct, I'm not sure how they'd divy it up. My guess is that they'd go after paychecks. In my state (VA) they can take up to 40% of your net income. Nice, huh? Beats the bank acct, though, where they can take every penny and your stuff will bounce gleefully through the atmosphere, even if you wrote it w/o having knowledge of the garnishment.

Netbank (dot com) may offer a checking acct to you. Alternatively, you could set up a savings acct in your name and have your checks go in there. You could go to ask.com and search for checking accts w/ bankruptcy or however you want to abbreviate it and you might find a bank that will give you an acct. Important to know, however, is that if the checking acct is somehow garnished, you are required by law to continue with your usual deposits (so if that's your whole check, then it's your whole check) or you can be prosecuted (at least in my corner of the world).

(((Hugs)))

It's a Girl!

Sarah
iVillage Member
Registered: 12-21-2004
Wed, 12-21-2005 - 8:56am

I finally got up enough nerve yesterday to call the bank and inquire about my husbands name being on the account. The woman I usually talk to was out so I just asked the woman that answered the telephone - she said that she was sure that if his name was on the checks that he had signed a signature card - I told her that I didn't think so - but maybe she was right. I told her he was having trouble with some creditors and that I was worried if they gota judgement that they could get our account and how to get his name off the account. She told me that I would have to close the account and open another one (well that was the problem to begin with) I can't open another one right now. She told me she would pull the signature cards and call me back that it may be an hour or two. Well 6 hours later I called her back and got her voice mail - I left a message for her to call me or e-mail me back. But of course I heard nothing. I did e-mail the lawyer and he told me tha the does not need to sign checks. Any form of ownership of the account may indicate to creditors that he is authorized to sign on the account. The account could be garnished. Tell the bank to dishonor any check he may write/sign on the account. His name must be removed from the checking account, if it is on the account. I didn't talk to the bank after I got this e-mail from the lawyer. I pray that all of this mess doesn't drive me insane. It is so hard for me to believe that other people that you read about on the Bankruptcy Board feel a sense of relief after they finally file bankruptcy but since we still owe way more than we can pay and his bills are now all in collections that we are as tense as ever. I wish that there was some way that we could come up with the money for him to just file bankruptcy also (and just to think that if he could have filed with me that the $1009.00 would have covered both of us) now with the new laws the price has went up and we will have to come up with $1009.00 + several hundred more - which I don't know how we could ever do - or have the courts start garnishing his wages and the chance of our checking account being messed with.

Maybe the lady from the bank will call me back this morning - I just hope that it is good news. Will post more later.

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 12-21-2005 - 1:05pm

Thanks for the update!


Keep us posted.

iVillage Member
Registered: 12-21-2004
Wed, 12-21-2005 - 1:33pm

Well I finally talked to the bank - they told me that there was no way at all to get my husband's name off from the account that I would have to come in and open up another account. I got an e-mail from my lawyer that said have them take his name off from the account. I called the bank back they said there was no way that they could do that. I spoke with two different people at the bank and they said the same thing. So a few minutes ago I went to the bank (so embarrassed to even walk in there) and when I told them that I wanted to open up another account and why - the person told me that if she was me she would not do that - unless I just wanted to - I have had the account since 1991 and that if my some chance the credit card companies did decide to do some kind of judgement against my husband that we would know in advance. And that on the rare occasions that they had a company have the account seized - they just got the money that was in it that day - she said it was NOT frozen or anything and that it was a one time thing. I asked her about 3 times if she was sure about that and she said yes. She also told me that we would have to sign for something before the judgement was done anyway and that if we knew it was coming we could just do a debit and take the money out. She had no reason to tell me wrong because the bank would benefit more by my having 2 accounts - that way I would be paying 2 service charges a month. I told her that this was keeping me up at night worrying and she assured me that it was a very very small chance that anything would happen at all and that since my name was primary she would just leave it alone.

I just want this to all be over......but it is not looking like it will be anytime soon.