Will my bank accounts be frozen?

Most of the time, Bank accounts are not frozen after filing bankruptcy. However, there are some occasions where a bank may choose to freeze an Account. A.) If an account was not listed on the petition, it may be frozen. B. If in account’s balance was listed incorrectly on the date of filing the account may be frozen. Banks will take this approach if funds were omitted from the petition in order to ensure that assets that weren’t disclosed are not liquidated without the bankruptcy court’s knowledge.

Will my bank close my account?

Most banks do not close accounts in response to a bankruptcy. However, there are a few credit unions in northern California that do close accounts in response to a bankruptcy. If you have a credit union that decides to close your account you are usually given a notice period to make alternate arrangements for your automatic deposits and withdrawals before services are terminated.

Can I continue to use my account normally after reporting bank balances?

On the morning your case is filed your bankruptcy attorney’s office will ask you for your current bank account balances and cash on hand before your case is filed with the court. You can continue to use your accounts after your bank balances are reported. The trustee that is appointed to your case, will confirm with bank statements that your balance was correct on the day of filing.

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

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