One of my clients files Chapter 7 bankruptcy. The client is an accounts manager for a one doctor medical practice. The doctor gave the client signature authority on the office account at Wells Fargo Bank so the client could easily pay the office bills. The account is titled in the name of the boss’s medical corporation. All the money in the account is from the medical practice receipts; the debtor deposits none of her personal money in the account. The account is set up under the business’s tax ID number.
After the client filed personal bankruptcy Wells Fargo froze the account because the debtor had signature authority. The doctor cannot pay his business bills with his own money. My office called a manager at Wells Fargo Bank and wrote emails to Wells Fargo demanding they release the account freeze, but the bank ignored our calls and letters. Next, we wrote an email to the Chapter 7 trustee in the hope that he would contact Wells Fargo and get them to correct their error. The
| Tags: Bankruptcy, Bankruptcy Debtors
Posted January 26, 2011 by Brayden Laura under Credit Report