Watch out for Wachovia!
When you file bankruptcy, all of your property becomes property of the bankruptcy estate – legally – until your bankruptcy is over in a Chapter 7, or until your Plan is confirmed in a Chapter 13.  However, practically speaking, you don’t notice anything different and you continue to live in your house, use your property, spend your money etc.  However, you generally cannot sell property while in bankruptcy, without the permission of the trustee, simply because your ownership interest is “on hold” until your bankruptcy is over.
Wachovia bank has decided to “freeze” money in their customers’ accounts, when the customer files bankruptcy. Â Wachovia is claiming that they are required to do this because the money is part of the “bankruptcy estate”. Technically, this is true. Â However, it not required and serves no legitimate purpose. Â When Wachovia has done this, Debtors’ attorneys have been able to contact the trustee, who authorizes the release of the funds – but none of this should be necessary because Wachovia should not be doing this.
If you have money in a Wachovia account, we recommend you close that account an open a new account in another financial institution, prior to filing bankruptcy.
