Many of our clients worry about losing their Bank accounts when they file bankruptcy. In our experience most banks allow our clients to keep their checking accounts post filing. However, there are certain credit unions that we have found that may close your bank Account or limit available products to you in response your bankruptcy filing. If you are concerned about losing your bank account, let us know who you bank with, and we can let you know if your bank is one that we have seen close accounts in response to a bankruptcy filing.

Some credit unions have policies that require the closure of your account if your filing causes a loss to them. For example, if you have a credit card with your credit union where you also have your checking account, that particular credit union may decide to close your account. Unfortunately, it isn’t always black and white and not all credit unions take this action with all of their clients. You can always reach out to your local branch to ask their policies on account closures in response to bankruptcy as well.

On very rare occasion a bank account can be temporarily frozen in response to a bankruptcy. Most often, this takes place if the bank account was omitted or not listed in the bankruptcy filing. This can be avoided by ensuring all bank accounts where you are listed as an accountholder are properly listed and disclosed in the filing.

For more questions about bankruptcy contact your Yuba City bankruptcy attorney at 530-797-4402.

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