What Happens To Your Bank Account When You File Chapter 7? (SOLVED)

In general, bankruptcy filings are not subject to any repercussions. The bank could take funds from your account prior to filing if you are late on any loan payments or credit cards. That’s called a set off and whether the bank can do this depends on the terms of your credit card agreement or loan. The automatic stay is in effect until the bankruptcy petition has been filed. If your account remains in good standing (I.e. It doesn’t have a negative balance) when you file for bankruptcy, you shouldn’t have any issues keeping your account 😊 [1]
Although it’s not required by the Bankruptcy Code to give a copy, many Chapter 7 bankruptcy trustees request that filers provide a copy their bank statement prior to the 341 meeting. While some ask for the file date statement, others request multiple months’ of statements. This information is required by trustees for a variety of reasons. It’s not to see how much you spent on take-out last month They will not judge you for purchasing your lunch every day at QuickTrip near your workplace. Instead, they’re looking for information that may not be anywhere else on your bankruptcy forms. Let’s find out what that might be! [2]
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If Chapter 7 is your bankruptcy filing, you can likely keep your bank account. Checking account Bank. The bank might have the power to seize funds from your bank account to pay off any debts you may owe to it. You might face this if your bank has a credit card. The funds can only be kept in the checking account if they are covered under exemptions provided by federal and state bankruptcy laws. Declaring the funds as exempt means The bankruptcy trustee is not authorized to take the assets and give them to creditors. [3]
You have the right to appeal a decision if you believe that a trial error has affected its outcome. You have a very limited time to appeal the decision. The Notice of Appeal must not be filed after the judge has signed the judgement. A civil case involves both parties. Legal action at the federal level, you must understand that the appeals process is very different from trial court and mostly involves legal briefs based on extensive legal research. In some cases, the appellate judge will request oral courtroom presentations for further clarification – that’s where the Law Office of Kretzer and Volberding P.C. You are invited to come in. [4]

Article references

  1. https://upsolve.org/learn/keeping-a-checking-account-during-bankruptcy/
  2. https://upsolve.org/learn/trustee-review-bank-statements/
  3. https://www.justia.com/bankruptcy/chapter-7/checking-accounts-in-chapter-7/
  4. https://kretzerfirm.com/what-happens-bank-account-during-bankruptcy/
Kelly-Anne Kidston

Written by Kelly-Anne Kidston

I am a writer of many words, from fiction to poetry to reviews. I am an avid reader and a lover of good books. I am currently writing my first novel and would love to find some beta readers who are interested in getting an early look.

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