New York Court Rules That Wells Fargo Did Not Violate The Automatic Stay By Temporarily Freezing Bankrupt Customer’s Deposit Account

LexisNexis (May 14, 2019, 11:48 AM EDT) -- In a significant bankruptcy case from New York, the bankruptcy court held that Wells Fargo violated the automatic stay in its customer’s Chapter 7 bankruptcy when the bank dishonored a presented check because it had temporarily frozen the account. The bank imposed the freeze while it waited for a response from the debtors’ trustee about what to do with the account in light of an exemption claimed by the debtors....