Legal Question in Bankruptcy in Nevada

I just completed a loan modification and paperwork is final. I am in serious debt and getting about half the income I did 2 years ago. My ex can't pay my alimony. I have over $40,000 in credit card debt and gross approx $26,000 per year. I have a Chase credit card and 2 accounts with WAMU-now Chase and need to know if I can keep my bank accounts (both are in good standing) when I file bankruptcy. Can Chase freeze the money in my account if I don't pay my bill? I can no longer afford to buy food or necessities (i.e. work clothing, shoes, etc) or pay medical bills (I don't have insurance). I work a full time job that requires approx 60 hours a week (salary) and I have a candle consulting business I do on the side. I need help. Please advise. I'm not sure what I should do and not sure where I can come up with money to file.


Asked on 9/20/09, 4:13 pm

1 Answer from Attorneys
Dorothy Bunce

I am dividing your question into two parts -

1) Will the bankruptcy court close the account? The answer is no, but the Trustee could take part of the money in the account if the balance in the account is more than is allowed & available under the exemptions.

2) Will WaMu Chase take the money in the accounts? It will depend on the "fine print" of your credit card account with Chase. In some instances, the bank took a security interest in your checking account as a condition of providing you with a credit card. If the terms of your account provide for this, Chase could at some point take the money in the account & apply it towards the money you owe them. However, in most instances, that will not be the case. You might wish to speak to the branch manager about the time you file Bankruptcy. You also need to decide how much risk you are comfortable taking.

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Answered on 9/25/09, 7:18 pm


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