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  1. #1
    Join Date
    Feb 2013
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    4

    Default Post Chapter 13 Harassment by Bank

    I hope I am posting this within the correct forum, so if my questions needs to go under debt collection, someone please let me know?

    To give a quick history...I and my wife filed for Chapter 13 last year in 2012 and had our final court date in October of 2012. We are now in our repayment period to the trustee and have made all payments on time since required. We are simply in 5 months into our 5 year repayment plan.

    The issue... Last week after my wife was paid, she went to her employer's bank in order to cash her check. After giving the check to the teller, the teller stepped away and then a supervisor returned. They told her that she owed them on a credit card debt from last year (2012) and that they were not going to give her the money from her check, that it needed to go towards paying the debt. She tried explaining to them about the bankruptcy, but they still refused. It was at this time I received a call from her while she was crying, and after hearing what happened, rushed down to the bank.

    Speaking with the supervisory teller, I explained to her that we had filed chapter 13 and the debt she was referencing was discharged in the bankruptcy proceedings. She went on to explain that they had no record of that ever being completed. My exact comments to her were that it did indeed occur and that we are not responsible for the banks inability to accurately manage administrative tasks. I continued to argue with her on this and then they came back and told us that they would give us the money from the check if we agreed to pay $200.00 dollars toward the debt.

    At this point I told her that I would like her name and the name of the "unseen" supervisor in another room as I was going to speak to an attorney and take legal action as they were attempting to garnish my wife's wages without any prior legal notices or proceedings. After this she went away and came back about 10 minutes later and then cashed our check and gave my wife her money.

    So my question is, how wrong is this action by the bank? My wife was very upset by this and all her friends saw this happen which embarrassed her tremendously! Later, she actually got sick from it as it stressed her out so much. Can this bank continue to do this, or is their actions illegal and can I take legal action against them?

  2. #2
    Join Date
    Sep 2011
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    OH10
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    17,019

    Default Re: Post Chapter 13 Harassment by Bank

    It does not appear to be harassment. It appears they made an honest mistake regarding account liability. Perhaps your wifes embarrassment will reinforce the need for both of you to be more financially responsible in the future. I suggest you not take checks there in the future.

  3. #3
    Join Date
    Sep 2005
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    98,846

    Default Re: Post Chapter 13 Harassment by Bank

    The only person who can tell you "how wrong" the bank's actions were would be your wife's lawyer, as her lawyer will be able to confirm that the bank was given proper notice of the bankruptcy and the status of the case, and how the debt to the bank was resolved or is being resolved as part of the Chapter 13 repayment plan. The answer your lawyer gives you will also illuminate what your rights and remedies may be if it happens again or, if the bank for some reason wasn't given proper notice of the bankruptcy, would present an opportunity to correct any omission.

  4. #4
    Join Date
    Dec 2008
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    Calif
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    Default Re: Post Chapter 13 Harassment by Bank

    To prevent this from happening again, open another account at another bank.

  5. #5
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    Default Re: Post Chapter 13 Harassment by Bank

    They were cashing a paycheck at the issuer's bank. Their opening an account elsewhere won't change the issuer of the paychecks.

  6. #6
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    Dec 2008
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    Calif
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    Default Re: Post Chapter 13 Harassment by Bank

    I would think her check could be cashed at another bank, in the future, to prevent this from happening again. It's strange her own employer, with whom they owed the debt, didn't know about the bankruptcy.

  7. #7
    Join Date
    Feb 2013
    Posts
    4

    Default Re: Post Chapter 13 Harassment by Bank

    @johnb123 – No, the check cannot be cashed at another bank. In order to cash the check at another bank requires an account and then the bank will require an automatic three working day hold on all local checks. Thus, one cannot cash a check for cash except at the issuing bank. That is the way the banks were we live operate and there is nothing one can do about it. The issue here is not to take the check elsewhere or her employer, but the harassment by this bank. We should not have to take the check to another bank!!

    @Mr. Knowitall - Thanks for the comments on your initial post. Since my original post I was able to finally get hold of our attorney (took two damn weeks!) to discuss and address this issue. I will respond back here after talking with him in case any others are curious about this and what actions can be taken. Your comments are appreciated!

  8. #8
    Join Date
    Dec 2008
    Location
    Calif
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    289

    Default Re: Post Chapter 13 Harassment by Bank

    I don't understand why you would continue to have an account at a bank where there's a judgement against you. If this happened in October of 2012, there was enough time to open an account somewhere else. Most lawyers I've talked to, have advised to never have an account at a bank where there's a judgement against you (especially your employers bank), even if you have filed for bankruptcy. I do agree, the bank should have known about your bankruptcy.

  9. #9
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Post Chapter 13 Harassment by Bank

    Quote Quoting johnb123
    View Post
    I don't understand why you would continue to have an account at a bank where there's a judgement against you.
    She DOES NOT have an account at the bank that caused the problem. She simple took her paycheck to the bank on which it was written and attempted to cash it. It is the employer who has the account at this particular bank. Nothing more, nothing less.

    The strong-arm tactics were a violation of the automatic stay if the case was still pending or a violation of the discharge injunction if the discharge had been entered. However, since there were no damages (she eventually got her money) there is nothing further to do.

    Des.

  10. #10
    Join Date
    Dec 2008
    Location
    Calif
    Posts
    289

    Default Re: Post Chapter 13 Harassment by Bank

    "the teller stepped away and then a supervisor returned. They told her that she owed them on a credit card debt from last year (2012) ".....it appears the credit card debt was from the bank they were at.

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