Here are Three Facts Every Client Must Know:

1. If you bank where they borrow, the bank will seize funds as a set off, even if you file bankruptcy.

2. When a Bankruptcy Case is filed, certain banks, such as Wells Fargo and Union, will freeze accounts as a custodian of the account. They will not release funds, even though checks may bounce, until further ordered by the court or they receive a No Asset Report from a Trustee.

3. Now, credit unions seem to be getting very aggressive about "popping" cars when members fall into default on credit cards and even home loans, even though car payments are current. They do so based upon the cross-collateral language in the car loan and mortgage (or note and deed of trust) documents. And, so, clients must be admonished that even though they may be current on car payments to a credit union, their car may be in jeopardy of being repossessed.

Louis J. Esbin

Law Offices of Louis J. Esbin

Certified Bankruptcy Specialist State Bar of California.