I recently filed chapter 13 bankruptcy and as a result my credit union has placed a hold on my savings account. I thought the automatic stay would protect that. I called then to question why this was done and was told their attorneys advised them to do this because of my bankruptcy. Is this legal? If not, what can I do about it?
ANSWER
Placing a hold on your funds is usually seen as a dirty trick by most reputable attornies. The provisions for your Chapter 13 do not allow banks to hold your money. Your attorney can petition the courts to have the money returned or freed up.