Wells Fargo

by: Jonathan Goldsmith Cohen
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If Wells Fargo is Your Bank, Move Your Accounts Before Filing for Bankruptcy

If you are contemplating filing for bankruptcy, are filing for bankruptcy, or simply want to preserve your rights as a consumer, move all of your accounts from Wells Fargo to another bank.

When a bankruptcy is filed, Wells Fargo will place a hold on all of your bank accounts whether or not you owe Wells Fargo money on a credit card or have a Wells Fargo home mortgage. Every night, Wells Fargo runs a computer program that compares all newly filed Chapter 7 bankruptcy petitions against its list of account holders. When Wells Fargo discovers that a bank account holder has filed bankruptcy, the freeze begins.

Once your accounts are frozen, only an order by a United States Bankruptcy Trustee can release the funds. This can have devastating effects on someone who has filed for bankruptcy. Without access to your bank accounts, you will experience bounced checks for things such as rent, your car payment, and mortgage payment. Not to mention, you are left without the ability to take money out of the bank to buy gas or food or pay utilities.

Recently, the United States Court of Appeals for the Ninth Circuit affirmed a decision giving Wells Fargo bank the right to freeze your accounts at the time a bankruptcy is filed and offering no recourse to the individual(s) who had their accounts frozen. Protect your money and your rights to ensure a smooth bankruptcy filing. Move your accounts from Wells Fargo to a different bank.