When you file for chapter 7 bankruptcy in Arizona, you need to be able to adjust to how you’ve done your banking before. It is very common for a lender to cut-off online access to bank accounts and generally make it a little more inconvenient for you.
To describe this more… let’s say you have a car loan. Once you file for bankruptcy, even if you’ve decided to keep the car and continue to pay the loan, the bank cuts off your online access. They claim this is done because of the Automatic Stay. They claim that by posting your balance and allowing you online access, someone could consider that “an attempt to collect a debt” – which they are prohibited from doing during bankruptcy. Fortunately, you’ll be prepared, you’ll know it’s coming, and you’ll be ready to make small adjustments. Thanks to technology, you don’t have to be totally inconvenienced.
Here are some ideas of dealing with life after filing bankruptcy but before your case is discharged.
- Use the online bill pay function through your current bank. You should have closed any bank account that you may owe money to, and reopened a new account with a new bank. This new bank should have online access to bill pay.
- You may mail your payments to their mailing address. Contact the lender and ask for the Bankruptcy Department. Ask them for the correct mailing address (because this may have changed now that you are in bankruptcy).
- Make your payments on time. Often, the grace period you may be accustomed to is taken away. Payments are due on their due date.
- You should be able to call for payoff information and balances by contacting the Lender’s Bankruptcy Department.
It’s a temporary adjustment that should go back to normal after your case is discharged. If you have questions or need assistance with the Lender please contact me.
