Chapter 7- Checking/Savings Account- 401K

[upontheventura]

What is the name of your state? New Hampshire
Hi guys~
Considering Chapter 7 due to a letter from a local lawyer who was "retained" by a collection agency (within SOL, btw.) The account is at $8000.00 and I have another account from the same co(different collector) at $5000. This decline in my credit started 2 years ago due to a relationship situation.lol( both accounts are Credit Cards) I am in 47,000 in debt(Student loans, Car payment, Credit) I know the lawyer will sue soon. It is an actual lawyer- I checked it out. I just pulled my credit report and the lawyer was on there as an inquiry. I have no assets other than 1 1992 car that is broken down in my yard. I have a 1999, $16000 car that I pay 360 a month for.(which i want to reaffirm)
How does Chapter 7 work in regards to bank accounts and 401K? Will I lose all of my checking and savings? I have at any given time, $1500.00 in Savings and $1000.00 in checking. I have $3800.00 in my companies 401K as well. I CANNOT do this if I will lose my ability to have a checking account. I dont owe my bank any money,dont have any lines of credit with them, never bounced a check~ Will they be informed of my bankruptcy and close my account? How much cash in the accounts can I keep? And i would gladly give them my 401K but my company is very small and everyone would know- i would be humiliated. Please help!!

 

[bigun]

LMAO at some of these exemptions. You guys to need to update this from the 17th century!

http://www.bankruptcyaction.com/nhexemptions.htm

See a lawyer. Most bk lawyers give free initial consultations. A 401K is exempt from creditor seizure.

 

[upontheventura]

LOL I know. Don't even think about

taking my chickens!
Ive been to that site, says nothing about Bank accounts. Im trying to put off the BK as long as possible- like the day i am served.

 

[nissandave]

Will I lose all of my checking and savings?

Make sure you are at a bank with a checking account that you wish to stay at for several years, because once you file, you will be placed in ChexSystems database and it will be hard to impossible to get a checking account anywhere else.

Will they be informed of my bankruptcy and close my account?

Usually , no, unless they pull a credit report for some reason. If they do find out, they will usually not close it unless you give them a reason to.

 

[smorr]

I'm from Massachusetts and filed a Chapter 7 in 2002, discharged in 2003. I was told by the attorney helping me not to worry about my checking/savings, etc. accounts, although you have to list them on your schedule. You also have to list any retirement accounts, although they should be exempt. I have had no problems with my bank since and it's a small bank not one of those huge ones like Sovereign, Fleet or Citizens. I still deposit in my savings and use my checking like I always did. I didn't lose my IRA and it had almost $9K in it at the time. The court will NOT take your checking account - you need something to live on. They won't take your savings either. You'll keep your 401(k) too. Listen to Bigun - good advice from someone who is familiar with the system and this forum!
Above all, when you file, be honest - as the atty for the BK court will investigate thoroughly. You'll be fine - and will hopefully be able to sleep at night too! I can!

 

[upontheventura]

Thanks guys- Smorr, How much did BK cost?

I have heard it is around 1000.00?

 

[Ladynred]

Hard to say, it varies widely by area. Filing fee is set by the Feds at $209 for a Ch 7, the rest is the lawyer's.

As for your savings, if the NH exemptions don't specifically exempt a certain amount of cash, then its up for grabs by the Trustee.

 

[smorr]

I paid $200 in Nov. 2002 to file the petition. But I also went into this pro se. I work for a lawfirm tho, so had my boss help me with it. And of course, there's fees if you hire an attorney. You can successfully file on your own and may even be able to find an attorney to look over the documents to make sure they're correct - for a fee. Bottom line, if you file on your own, claim everything - get educated on the process (there are books out there that can help), you can purchase a kit/package from a local Staples for about $30 - it gives you all the forms you need and then some. Also gives you info on your exemptions by state. You may also be able to get forms off the NH state bankruptcy website (I'm sure NH has one), but it's a tedious job to know which ones you'd need. The kits give you everything. The only drawback I found is that if you need help - the court cannot advise you, by law. The info they give is limited since they not attorneys and they'll just say you need to speak to your attorney. Hope this helps!

 

[JulyChik]

Not true. I filed Chap 7 and never got put on a database....
Never had a problem opening a checking account

Will I lose all of my checking and savings?

Make sure you are at a bank with a checking account that you wish to stay at for several years, because once you file, you will be placed in ChexSystems database and it will be hard to impossible to get a checking account anywhere else.

Will they be informed of my bankruptcy and close my account?

Usually , no, unless they pull a credit report for some reason. If they do find out, they will usually not close it unless you give them a reason to.

 

[cyana24]

Not true. I filed Chap 7 and never got put on a database....
Never had a problem opening a checking account

I didn't either. That is, never got put in a database and did not have a problem opening another checking account. Actually, when I filed I had just closed one down (had the paperwork to prove if asked) and just opened one at another bank, one with lower fees. No fraud involved or intended... I filed near the end of the month, draining the first account to nearly nothing with normal household bills, then opened the second with about $200, all I had at the time.

 

[Ladynred]

Unless you leave the bank hanging for a bounced check, there is NO REASON for them to report you to ChexSystems just because you filed for BK. There is also no reason for them to close your account just because you file for BK as long as you don't owe them anything.