Who should I bank with if I have debt or I am thinking about filing bankruptcy in New Jersey?

In the process of preparing your bankruptcy petition, you will be asked to provide information concerning banks and other lending institutions that you transact with.  In our experience, we have come to learn that certain institutions will freeze or levy client bank accounts upon receiving notice of a bankruptcy filing.  While we believe this conduct is illegal and in violation of the U.S. Bankruptcy Code, the institutions continue this conduct despite warnings and the imposition of sanctions from the Court for doing so.  As such, we provide the following guidelines to our clients:

  1. Never bank with an institution that you owe money to.
  2. If you are currently banking with a creditor that you owe money to (i.e. – you have a savings account and a credit card with the same institution and the credit card has a balance), you must immediately close the bank account.
  3. Never open a bank account with a bank that you may get a credit card from in the future (no matter how good the terms).
  4. Never, ever, bank with “Wells Fargo Bank”. This includes opening bank account, obtaining credit cards or taking loans.  This lender has been reprimanded and sanctioned several times for conduct found to be harmful to consumers.  Furthermore, Wells Fargo will freeze your account upon filing even if you do not owe them any money.
  5. Never give any creditor permission to debit your account automatically.  Instead, you can use bill pay through your bank and manually click a button to process payment.

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