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From the Editor – Automatic Stay
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By The Honorable William Houston Brown (Retired)
Administrative freeze violated stay. When the Chapter 7 debtors filed their petition they had four deposit accounts, the balances of which were claimed as exempt under § 522(d)(5). Five days later, the bank placed an administrative freeze on the accounts, and before having notice of the freeze, the debtors had written checks that bounced. The bank notified the trustee of the freeze and asked for direction on what to do with the account funds, and the trustee advised release to the debtors, but the bank did not release . . .
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