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Expert Analysis

Banks Must Heed The Warnings Of Weidenbenner

Law360, New York (January 21, 2015, 1:06 PM EST) -- What is a bank to do when an individual depositor files a Chapter 7 bankruptcy petition? Do the turnover requirements of the U.S. Bankruptcy Code allow the bank to put a freeze on the debtor's account, at least until the Chapter 7 trustee advises the bank what to do with the funds? A recent decision from the chief bankruptcy judge from the highly influential Southern District of New York highlights the risks that a bank takes when it freezes a debtor's bank account....

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