In my experience, WF will place an “administrative hold” on all accounts with more than $1,000 on the filing date. They send you and the Trustee a letter explaining they will release the funds once instructed to do so by the Trustee. Not sure you have grounds to sue. I’ve resolved this issue by coordinating a “release” letter from Trustee to WF. I’ve prevented the problem from occurring again by warning my clients of this situation every time I see a WF account listed by a Debtor. As I understand it, there is a provision in the code that expressly permits the banks to do this. Can’t quote it offhand. Wells Fargo is crazy about doing this. I have the amounts full exempted in these cases and it doesn’t matter. The 7 Tee in the latest case won’t release the funds until the 341A so the Debtor lost $6K and can’t pay rent or health insurance. 7 Tee won’t budge on the subject. One of my standard form letters advises clients to avoid Wells Fargo. WFB takes the position that they are ‘preserving’ possible estate assets. They told me years ago that their threshold was $5k. And that’s $5k in aggregate across multiple accounts (so beware!) Could be different now. Where is it the code that they have to help the Trustees preserve assets if the accounts have more than $5k, but they don’t have that ‘duty’ if the accounts have less. Another provision advises to change FROM banks where money is owed (eg, BofA checking and BofA credit card), to avoid the bank lien issue. Still, it happens once or twice a year to my clients. Some trustees cooperate and sign a letter instructing the bank that the funds are claimed exempt and should be release immediately, some (like WFB) want the debtors to suffer and wait until problem upon problem cascades from the post-petition bounced checks.
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