s7enty8

September 6th, 2011 by Questions

I declared bankruptcy back in March, i had a $1000 overdraft with my bank and when everything went through, the bank waited till I got paid then took away my overdraft plus $900 of my pay, because i was well into my overdraft. So i was left with $150 for 2 weeks for my family. Are they allowed to do that or does the bank owe me $900?

Posted from: Nova Scotia

Questions

One Response to “s7enty8”



, A licensed trustee said:

It is called the right of “set-off” – the bank may seize funds in one accoutnt o cover a debt elsewhere. If your pay was deposited AFTER you filed then you should ask your trustee to try and recover the money. In most cases they can becuase while the banks can seize money on depsit on the day you file, they are not supposed to seize funds deposited after you have filed.

To everyone else reading this post – we advise all of our clients to change banks BEFORE they file for bankruptcy to someone they are not indebted to – then this sort of thing cannot happen.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)