In this installment of my Bankruptcy Alphabet, I had a difficult time deciding what “B” could stand for. I thought about “B is for Bret” and writing a glowing review of my services and abilities. But I thought most people would see through the self-promotion attempt. I also considered writing about “Bears, Beets, and Battlestar Galactica,” but I wasn’t sure how to connect it to bankruptcy. So I decided to give some tips on dealing with banks.
– Use different banks for your loan and deposit accounts. As I mentioned in THIS post, it may be difficult to get your money back from a bank or credit union that decides to exercise its right of setoff. Letting a bank to which you owe money hold all of your deposit accounts is akin to letting your loan shark hold onto your wallet. He’s going to pay himself from those funds before returning anything to you. Don’t fool yourself; the bank isn’t going to treat you any better than the loan shark.
– Don’t agree to repay a personal loan or credit card debt just because “the bank has been SOOOOO good to me!” The bank doesn’t care about you. Banks are business institutions, incapable of emotion. Some employees may be friendly when dealing with you, but when your interests conflict with the bank’s interests, which side do you think those employees are going to take? Keep this in mind: the bank is not your friend. It is simply an institution with which you are doing business.
– Consider doing business with a local bank or credit union. When you have a problem with your lender, it’s much easier for you (or your lawyer) to deal with someone locally than to try and work things out with a customer service representative located overseas. I rarely have any problems working out agreements with the local banks here in southwest Wisconsin. I’m lucky if I can even get a person to talk to me when dealing with some of the national banks.
– Be honest when applying for credit. If you exaggerate your income when applying for credit, the debt could be deemed nondischargeable in a future bankruptcy. See §523(a)(2)(B) of the Bankruptcy Code for more information.
If you’re considering filing for bankruptcy, be sure to talk to your attorney to see if your bank or credit union has a history of making things difficult for their bankrupt customers.
Bankruptcy attorneys from around the country are taking part in this “Bankruptcy Alphabet” exercise. Please take a few minutes to check out these other blog posts on the letter “B.”
Bad Credit – by Houston Bankruptcy Attorneys, Busby & Associates
Bad Faith Filing – by Miami Bankruptcy Attorney, Dorota Trzeciecka
Bailout – by Jacksonville Bankruptcy Attorney, Monica D. Shepard
Bank Account – by New York Bankruptcy Lawyer, Jay S. Fleischman
Bank Account – by Daniel J. Winter, Chicago Bankruptcy Attorney
Bank Account Levy – by Philadelphia Bankruptcy Lawyer, Raymond Kempinski
Bank Statement – by Westlake OH bankruptcy Attorney William Balena
Bankruptcy – by Taylor Michigan Bankruptcy Lawyer, Christopher McAvoy
BAPCPA – by Livonia Michigan Bankruptcy Attorney, Peter Behrmann
Bankruptcy Budget – by Columbus, Ohio Bankruptcy Attorney, Athena Inemboildis
Bankruptcy Estate – by Metro Richmond Bankruptcy Attorney, Mitchell Goldstein
Bankruptcy Mill – by Chicago Bankruptcy Attorney, Kyle A. Lindsey
Bankruptcy Petition Preparers – by Colorado Springs Bankruptcy Attorney Bob Doig
Bankruptcy Timeline – by Pittsburgh Bankruptcy Attorney Shawn N. Wright
Bar Date – by Ormond Beach Bankruptcy Attorney, Lewis Roberts
Benefits of Chapter 13 – by Vermont/New Hampshire Bankruptcy Lawyer, Michelle Kainen
Best Efforts Test – by St. Louis, Missouri Bankruptcy Attorney, Nancy Martin
Best Interest of Creditors – by Honolulu Bankruptcy Attorney, Stuart Ing
Beware of these Credit Card Offers – by Marin County Bankruptcy Attorney, Catherine Eranthe
Borrow – by San Francisco Bankruptcy Attorney, Jeena Cho
Budget – by Birmingham Bankruptcy Attorney, Elizabeth Johnson
Business – by Omaha/Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
Business – by Northern California Bankruptcy Lawyer, Cathy Moran
Business & Individuals – by Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
Business Bankruptcy – by Los Angeles Bankruptcy Attorney, Mark J. Markus
Businesses and Business Debt – by Newnan Georgia Bankruptcy Lawyer, Rick Palmer
Buy Low and Sell High – by Cleveland Area Bankruptcy Lawyer, Bill Balena