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BK and checking account


punkenhead
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Hi, I am filing BK7 Pro Se and had a couple questions about checking accounts. I have two checking accounts, one with a negative balance, the other with a small balance. Do I need to include the negative balance account in my list of creditors? Also, if I don't exempt both bank accounts can funds be seized from the non-exempt account in the future? My bk is definitely going to be a no asset bk, if this makes a difference.

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Do I need to include the negative balance account in my list of creditors?

Yes, it IS a debt you owe the bank.

can funds be seized from the non-exempt account in the future?

No. BUT, if both accounts are in the SAME BANK, the bank can exercise its right to set-off and take money from the positive account to pay the negative. This set-off right is one of the few things NOT stopped by the automatic stay.

Oh.. and you can't 'exempt' a negative account.

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Do I need to include the negative balance account in my list of creditors?

Yes, it IS a debt you owe the bank.

can funds be seized from the non-exempt account in the future?

No. BUT, if both accounts are in the SAME BANK, the bank can exercise its right to set-off and take money from the positive account to pay the negative. This set-off right is one of the few things NOT stopped by the automatic stay.

Oh.. and you can't 'exempt' a negative account.

Thanks always for your answers. I am actually planning to close the negative account. I have already discussed with the bank, and they are being very helpful. They have agreed to leave the other account alone, as they know I need it to live. (Benefits of living in a small town and using the same bank for several years). I don't want to leave the bank high and dry...I would like to pay them back. Would it be considered preferential to pay the account back to zero prior to my 341 meeting, or are bank accounts considered differently, as they, by nature are supposed to be at zero or positive?

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