The Ninth Circuit – U.S. Court of Appeals held that a bank did not willfully violate the automatic stay by placing a temporary administrative pledge on the debtors’ accounts in favor of the bankruptcy trustee.
A copy of the opinion is available at: http://cdn.ca9.uscourts.gov/datastore/opinions/2014/08/26/12-16087.pdf
Wells Fargo, however, recently got slammed by a Federal Judge in NY for their practice of freezing Chapter 7 Debtor accounts nationwide. Bankruptcy Court Judge Cecelia G. Morris. December 2014, awarded the Weidenbenners $25 in damages for a bounced-check charge, plus costs and lawyers fees. In her ruling, the judge blasted Wells Fargo, which was not a creditor in the case, for freezing the money and controlling access to it. Accusing the bank of “grandstanding” about bankruptcy-code compliance. In re Weidenbenner, 521 B.R. 74, 2014 WL 7139994 (Bankr. S.D. N.Y., 2014).
Wells claims that their nationwide policy is only to freeze accounts of debtors with $5000 or more– not true. If you are going to file Chapter 7– move your bank account from Wells Fargo before you file.
Clearwater Bankruptcy, 28870 U.S. Hwy 19 #361, Hodusa Towers, Clearwater, FL 33761,
Phone: (727) 330-1627 email: [email protected]