When preparing for bankruptcy, it’s important to understand how your bank accounts might be affected and what to do to protect them.
Many people ask, “Will I be able to keep my checking accounts when I file for bankruptcy?” The answer is…maybe. If the bank allows it, then, yes. You may keep your account. However, banks retain the right to freeze or close your account, and in many instances, they do.
Understanding Bank Accounts & Bankruptcy
There a few things about bank accounts you’ll need to know as you begin the process. First, keep in mind that banks are in the business of money, and if you owe them money, they will do whatever they can to get it. Ultimately, your non-exempt asset in your checking account may be taken by the bankruptcy trustee handling your case to meet your debt obligations, but filing creates an automatic stay that prevents credit collections.
Talk to your bankruptcy attorney about claiming that your bank assets should be exempt and therefore untouchable. Before emptying the existing account and/or opening a new one, talk to your attorney. This could raise questions when going through the process. Do not attempt to hide your assets; you are required to reveal them when filing for bankruptcy. Hiding them could create a new set of problems.
Contacting a Texas Bankruptcy Law Firm
To best protect your assets and help the bankruptcy proceedings go as smoothly as possible, contact our bankruptcy law firm in Texas, Warren & Migliaccio. Our attorneys are available for a no-obligation consultation. Contact us at (888) 584-9614 to set up a consultation to review your case and go over your options.