What Happens To My Bank Account When I File Chapter 7? [Video]

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If you’re planning to file for Chapter 7 bankruptcy, you have good reason to be concerned about the money in your bank account. While Chapter 7 cases usually proceed without any problems, unexpectedly losing bank account funds is a common cause of needless grief. Avoiding banking-related problems in Chapter 7 is simple once you’re familiar with the following key issues: •Can you exempt (protect) your entire bank account balance? •Do you owe money to the bank or credit union for a credit card or loan? •Are you prepared for the bank or credit union to freeze your account? •Do you realize that some institutions will not open an account for you after you’ve filed a bankruptcy case?

Keep in mind that while pre-bankruptcy planning can help, the best way to avoid unexpected issues is to consult with a knowledgeable bankruptcy lawyer before filing your Chapter 7 case. Fortunately, you don’t lose everything when you file for bankruptcy and can keep all assets covered by your state’s bankruptcy …