Graniteville, SC asked in Bankruptcy for South Carolina

Q: Is it legal for credit card companies to withdraw money from your checking account if you're in bankruptcy?

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3 Lawyer Answers
Stuart Nachbar
Stuart Nachbar
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ

A: Only if issued by a credit union

David Earl Phillips agrees with this answer

Matt A Munson
Matt A Munson
Answered
  • Bankruptcy Lawyer
  • Cedar City, UT

A: All creditors are strictly prohibited from making ANY collection efforts while bankruptcy proceedings are pending, unless they have been granted Relief of Stay from the bankruptcy court.

D. Nathan Davis
D. Nathan Davis
Answered
  • Bankruptcy Lawyer
  • CHARLESTON, SC
  • Licensed in South Carolina

A: If the credit card company is aware of the filing of the bankruptcy then it should not have withdrawn the money and doing so is a violation of the automatic stay which goes into effect when the case is filed.

If you told the credit card company not to draft money out of the account and have the name of the person you spoke with as well as the date and time you spoke with the company, then you should be able to sue them also.

There are always exceptions to every rule so you really need to speak with an attorney to get an answer after all of the facts in your case are reviewed.

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