http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/ Real Lawyers, Real Solutions Tue, 10 Nov 2009 16:34:06 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/comment-page-1/#comment-1331 “What happened to my check?!”: The Recoupment Trap at Bankruptcy Law Network - Real Lawyers, Real Solutions Mon, 16 Apr 2007 05:52:50 +0000 http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/#comment-1331 [...] In this case, I’m talking about debts subject to “recoupment.” It is a complicated area of law, closely related to setoff. A setoff can occur when you owe a creditor a debt on one contract (like a loan) and they owe you a debt (like a bank account); a recoupment involves debts owed back and forth under the same contract. So for example an overdraft line of credit on your checking account may exist under the same contract with the bank as your original checking account agreement — and allow the bank to “pay itself first” from any deposits you make before honoring your checks. The law treats recoupment as a defense to a demand for payment — a right to say “no” when you want your money under a deal — and not an attempt to collect a debt. Therefore, you may have discharged the debt but they can, in effect, keep collecting the debt, from the money they owe you under the same deal. With impunity. [...] [...] In this case, I’m talking about debts subject to “recoupment.” It is a complicated area of law, closely related to setoff. A setoff can occur when you owe a creditor a debt on one contract (like a loan) and they owe you a debt (like a bank account); a recoupment involves debts owed back and forth under the same contract. So for example an overdraft line of credit on your checking account may exist under the same contract with the bank as your original checking account agreement — and allow the bank to “pay itself first” from any deposits you make before honoring your checks. The law treats recoupment as a defense to a demand for payment — a right to say “no” when you want your money under a deal — and not an attempt to collect a debt. Therefore, you may have discharged the debt but they can, in effect, keep collecting the debt, from the money they owe you under the same deal. With impunity. [...]

]]> http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/comment-page-1/#comment-108 Carnival of Personal Finance at Bankruptcy Law Network - Real Lawyers, Real Solutions Tue, 06 Mar 2007 16:24:20 +0000 http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/#comment-108 [...] My post on Relationship Banking is featured on this week’s Carnival of Personal Finance. Please enjoy the great articles in the carnival, as well as Mapgirl’s Fiscal Challenge. [...] [...] My post on Relationship Banking is featured on this week’s Carnival of Personal Finance. Please enjoy the great articles in the carnival, as well as Mapgirl’s Fiscal Challenge. [...]

]]> http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/comment-page-1/#comment-101 Carnival of Personal Finance » Carnival of Personal Finance #90 Mon, 05 Mar 2007 15:04:33 +0000 http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/#comment-101 [...] Relationship Banking: Who is It Good For? (Bankruptcy Law Network) [...] [...] Relationship Banking: Who is It Good For? (Bankruptcy Law Network) [...]

]]> http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/comment-page-1/#comment-100 Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90! Mon, 05 Mar 2007 13:30:49 +0000 http://www.bankruptcylawnetwork.com/2007/03/02/relationship-banking-who-is-it-good-for/#comment-100 [...] Bankruptcy Law Network give us Relationship Banking: Who is it good for?. I really like this one. I’m not a big fan of banking all in one place. Here’s a great justification of why you shouldn’t. Of course, I’m not planning on a bankruptcy either. But something to think about. (And remember, the FDIC only insures you up to $100K in deposits.) [...] [...] Bankruptcy Law Network give us Relationship Banking: Who is it good for?. I really like this one. I’m not a big fan of banking all in one place. Here’s a great justification of why you shouldn’t. Of course, I’m not planning on a bankruptcy either. But something to think about. (And remember, the FDIC only insures you up to $100K in deposits.) [...]

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