Posted on January 12, 2010 in Bankruptcy
A common question people ask me at our initial meeting to consider
bankruptcy in New York, is how will their bank accounts be affected. It seems
sensible enough that your credit cards may be canceled if you are
filing for bankruptcy, but less intuitive as to the state of your
Generally speaking, nothing bad will happen to your checking accounts at all. Banks usually do not close or otherwise touch their customer’s accounts just because they have filed for bankruptcy.
The exception to this is where you may owe the same bank money via a
overdraft is a different account. If you have a Chase* Checking Account
and owe Chase $6,500 on a current account it might be prudent to move
your money to a new bank you have no previous relationship with. This
is because banks may be able to use the concept of a "set off" to set
off any money you owe them.
*For some reason everyone seems to owe Chase a lot of money.
Go to Dwyer & Associates Bankruptcy information.
People often ask whether their checking accounts will be closed in bankruptcy.. answers inside..