QUESTION
My question is can a bank hold onto funds that were put into an account via ACH if they were verified by the depositor.
Asked on Apr 18th, 2012 on Bankruptcy - Virginia
More details to this question:
I received money from my family trust, I had it deposited into my friend''s bank account because I dont have one. The amount was $20,000.00. I want to know why is it okay for the bank to not release my money to me. And if it isn''t legal then how do I go about having it released. Suntrust (the depositor of the funds) sent a letter to verify the amount and that the deposit was supposed to be put into that account. The account holder okay''d the deposit. Now we are being told they can''t send the funds back for 2-3 weeks. Is this legal?
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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The only bank I know of that "holds" or freezes funds in a bank account after the filing of a bankruptcy case is Wells Fargo Bank. They take the position that they are holding the funds for the benefit of the bankruptcy trustee. However, some courts have held this to be a violation of the automatic stay, so au need to discuss with your attorney how best to proceed on this. The freeze is only temporary, so it's a matter of how long it takes to get them to release the funds.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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Answered on Apr 18th, 2012 at 11:11 PM