One of my clients files Chapter 7 bankruptcy. The client is an accounts manager for a one doctor medical practice. The doctor gave the client signature authority on the office account at Wells Fargo Bank so the client could easily pay the office bills. The account is titled in the name of the boss's medical corporation. All the money in the account is from the medical practice receipts; the debtor deposits none of her personal money in the account. The account is set up under the business's tax ID number. After the client filed personal bankruptcy Wells Fargo froze the account because the debtor had signature authority. The doctor cannot pay his business bills with his own money. My office called a manager at Wells Fargo Bank and wrote emails to Wells Fargo demanding they release the account freeze, but the bank ignored our calls and letters. Next, we wrote an email to the Chapter 7 trustee in the hope that he would contact Wells Fargo and get them to correct their error. The Chapter 7 trustee has done nothing. Perhaps the trustee is not interested in my client's boss's problem because money in the business account is not part of the debtors bankruptcy estate. It appears that my client will have to file a motion with the court to release the account freeze and request sanctions. Either my cliernt or her boss may have to incur additional expense to remedy a problem clearly not their fault. Even if the court orders the account freeze released it is not certain tht the court will award the full amount of legal fees incurred. I have found cases where Wells Fargo Bank has done similar things to bank accounts in California, and that the bankruptcy courts there have imposed significant sanctions. Unless Wells Fargo has a good explanation for what it did to my client's employer , courts in Florida will punish this tactic; being "sorry for the inconvenience" will not solve the problem.
Read more detail on Recent Bankruptcy Posts –Legal notice about the Wachovia Bank Goes Wild: Freezes The Bank Account Of Bankruptcy Debtor's Boss rubric : Hukuki Net Legal News is not responsible for the privacy statements or other content from Web sites outside of the Hukuki.net site. Please refer the progenitor link to check the legal entity of this resource hereinabove.
Do you need High Quality Legal documents or forms related to Wachovia Bank Goes Wild: Freezes The Bank Account Of Bankruptcy Debtor's Boss?