When you’re getting ready to file for bankruptcy, whether you’re an individual or a small business owner, you have enough to worry about without your bank getting in on the act and taking your money. You come to an agreement with your lenders and expect that agreement to be honored. As part of your bankruptcy agreement, you may endeavor to negotiate allocation of some of your savings for your lifestyle essentials, such as clothing, food and medical care. More and more customers of Wells Fargo are finding out that this is not always the case and are having to battle unjust asset seizures pursuant to the institution’s bankruptcy program.
The country’s fourth-largest bank recently lost a potentially significant decision in bankruptcy court when they seized the assets of a small business owner and his wife that they had set aside to keep their heads above water. As part of their bankruptcy agreement, the couple was able to keep about $7.000, which Wells Fargo seized shortly thereafter claiming they were required by the bankruptcy code to preserve estate funds and follow the trustee’s directions regarding the money. Following the decision, the judge proceeded to characterize Wells Fargo’s bankruptcy program as “inconsistent.”
The seizure reversal is the first one of its kind in New York and could not have been accomplished without the assistance of a qualified bankruptcy attorney. Debtors in all stages of this process need to understand their rights obligations so that when something like this happens, they are able to gather their resources and combat these unfair asset seizures. This is a time in which accurate information and fair treatment are critically important. Don’t become a victim of misinformation. If you’re planning on filing for bankruptcy protection, talk to an experienced bankruptcy attorney now.
The Law Firm of Joel R. Spivack specializes in helping clients through bankruptcy. We understand that it can be an uncomfortable ordeal and we are here to help you complete the process as soon as possible so you can move on with your life and start rebuilding. Contact us now to get your fresh start.