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If a loan is set up through an automated clearing house payments is a bank obligated to stop these payments upon notice of bankruptcy?
Wiki User
∙ 15y ago
Under the ACH rules which govern automated clearing house transactions there is no requirement to discontinue recurring transactions upon bankruptcy. In order to stop the recurring ACH payments, simply send a written notice to the organization that is debiting your account which states that you are revoking your authorization for them to debit your account.
If they continue to debit your account, you can contact your bank and fill out a WSUPP (Written Statement Under Penalty of Perjury) form and your bank will reject any future payments from being debited from your account and refund to you any debits which ocurred after you revoked authorization to the organization debiting your account.
For more information:
http://www.ach-consulting.com and http://www.achdirect.com
Wiki User
∙ 15y ago
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What is an automated clearing house?
An automated clearing house is an electronic funds transfer system which allows for inter-bank clearing of electronic payments, such as credit card transactions.
What is ACH processing used for?
ACH stands for Automated Clearing House and is the network for all financial payments and transactions in the US, excluding credit card payments. It is governed by the Federal Reserve and the National Automated Clearing House Association.
Can you file bankruptcy in Ohio then move to Germany before the bankruptcy is complete?
Yes, you can move anywhere you want to, but if you are paying payments (Chapter 13) you are still legally obligated to make the payments.
What is the full form of ACH?
Full form of ACH is Automated Clearing House. The Automated Clearing House (ACH) is a system which facilitates electronic fund transfers between banks in the United States. The payments remain here till the clearance from the final banking destination is given.
How can someone perform a bank ACH transfer?
ACH stands for Automated Clearing House. One can perform a bank ACH transfer by direct-deposit payroll payments and payments to contractors and vendors.
Will chapter7 bankruptcy clear dept?
A chapter 7 bankruptcy is the nuclear bomb of debt clearing. It will however, not get rid of certain taxes, preference payments, college loans, and other not dischargeable debts.
Are you obligated to make house payments if you file chapter 7?
Yes. A bankruptcy does not cover Housing so the debt will not be wiped out. Either pay or surrender the property.
When was Australian Payments Clearing Association created?
Australian Payments Clearing Association was created in 1992.
What are automated clearing-houses?
processes and delivers electronic debit and credit payments among participating institutions, usually commercial and savings banks, savings and loan associations, and credit unions
What is clearing code?
Clearing codes are used to route payments between banks within countries Bank clearing and routing
If you file for bankruptcy and you cosigned for someone can the car loan be included in the bankruptcy if the person is not making their payments?
YES, you can include it whether the payments are current or not.
Are bankruptcy payments tax deductible?
Absolutely not. Bankruptcy payments are repayments for debts that you incurred in the past and did not pay. There is no circumstances where these could be deductible on your income taxes.
