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Ashley D

Checking acount and bankruptcy - right to offset

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Hello all, I recently filed for Ch. 7, I included a checking/savings account in the claim that had a negative balance. The bank took out two payments which were my entire paycheck after the filing date to cover the negative balance from another checking account that I had opened in the same branch. So far they are telling me they had a right to take the money even though it was filed under bankruptcy and they took the money after the file date, under something called "the right to offset" Does anyone have any information about this or have gone through the same thing? Thanks.

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If you have an attorney, you should ask them because they may not have that right under BK. If you had come here before filing, we would have suggested you move to a different bank prior to filing to keep things like this clean.

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Thank you, I did try 3 other banks but was not able to open an account at either of them, that's why I opened an account in the same branch.

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This is long becasue there are several if/thens involved, but it looks like it will probably answer your question:
http://www.klgates.com/files/Publication/56da8ca6-ba6a-4973-8fa4-3b2d8aaf05a5/Presentation/PublicationAttachment/77554d2e-5845-481f-9f1c-4f3a7f161e4d/ba1205.pdf

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