John, if you are having trouble understanding the facts and issues here, perhaps you should step back.
John, if you are having trouble understanding the facts and issues here, perhaps you should step back.
A better way of handling the situation would have been, if the bank did not have any of the paper work on the bankruptcy (the delay could have been from the courts being slow), would have been to bring any paperwork to the bank. The banks are not going to go on your word alone. It does no good talking to them, if you don't have any proof with you.
I am not even sure this is really a bk issue. My gut tells me that if the bank had dishonored its obligation to cash a “demand instrument” drawn on one of its depositor’s account, it would have violated state and/or federal law as it relates to negotiable instruments. But, since I am not up on my UCC law in this area, I could be wrong. I would also think that the bank would not have had a right to offset funds to cover a debt since there was no contract between OP’s wife and the bank - unlike when someone banks at a bank he/she owes money to and the bank has the right to swipe the account to cover a defaulted obligation.
Clearly management at this particular bank were being jerks but, in the end, OP’s wife got her money.
Des.