Wells Gone Wild: Freezes Debtor’s IRA Account

I have reported previously on this blog that Wells Fargo Bank often will freeze bank accounts of its depositors who have filed bankruptcy even if the debtor claims the money in the account as exempt property on their bankruptcy petition. Wells Fargo bank often requires a letter from the bankruptcy trustee to give the debtor, and even his non-debtor spouse, access to the debtor’s money.

This Wells Fargo practice is annoying, but most bankruptcy debtors have only small amounts of cash in their bank accounts when they file Chapter 7 bankruptcy. A couple weeks ago I heard that Wells Fargo froze a debtor’s retirement account with over $100,000 when the debtor filed bankruptcy. Accounts clearly labeled as IRAs or other retirement accounts are clearly exempt in Florida. There is no reason why a bank should freeze a debtor’s IRA because the debtor files bankruptcy.

My advice: if you are considering bankruptcy you should move all your bank accounts out of Wells Fargo bank.

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