Bankruptcy

GUYS!!! COME ON!! If You Have Your Dough in a Bank Where You Owe Money, Is that a Good Thing? Really?

By Joseph McDaniel, Esq.

Because the bank just grabbed $40,000 from a nice man who would have preferred to use some of it to keep his business alive and to provide rehab for his wife, who can't move her arms and legs very well right right now.

So let's ask ourselves this question: if you are in default, even a little bit, and you have a lot of money in a bank account in that same bank where you owe money, do you think there's some chance that your bank account will read zero in the near future?

Well, do ya?

p.s. even if you are not in default, do you think that if you get sued by a non-bank creditor, a bank might "deem itself insecure", and grab all the dough in your account?

And suppose the bank is in the wrong, legally. Exactly what are you going to do about it?

I have a great buddy who was a tough, tough bank lawyer, in house. And when I negotiated with him twenty years ago, he said, "Go ahead and sue my bank! We sometimes lose at trial. But we've never lost on appeal."

I thought that was a useful legal seminar, in three sentences.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on August 05, 2010 (boomark / email).