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Seizure of Bank Account

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G

greatdane

Guest
What is the name of your state? Pennyslvania
I work at a company which is in Chapter 11 Bankruptcy. We most probably will be converting to a Chapter 7 case but not before we sell our building which will pay the mortgage on the property and a few other secured creditors. There was an expedited hearing on the sale of the building just the other day. So we are very close to the end. Anyway, last week the bank which we have the mortgage with seized our bank account. We of course did not know this happened until after the fact. We had checks written for payroll (of which one of them was mine), federal taxes, etc...
Is this it? Does the bank have the right to take the money that was clearly meant for somebody else? The checks were in transit.
Are any of these items exempt from the bank's seizure?
There are only 3 of us left here. We had to skip the most recent payroll because we cannot write checks from the account. That now means we have not been paid for a month. We 3 remaining employees are here to tie up loose ends, collect receivables for the bank, etc.
How can they expect us to work and not get paid? I feel like we are being harassed now.
We are clearly loyal and clearly closing up shop. How can I be expected to complete the monthy trustee report and not get paid?
Any advice would be greatly appreciated!
 


On these facts, it sounds as though the bank has committed a bald violation of the automatic stay. A corporation can't get damages for that, but I would expect the bankruptcy judge to order the account unfrozen so that the debtor's business can continue to be operated in ordinary course. That relief might include attorney's fees for having to bring the motion in the first place.

What does the company's attorney have to say about this?
 

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