What Happens to Your Bank Accounts When you File for Bankruptcy?
Many people always wonder, if they file for bankruptcy do they get to keep their bank accounts? If your accounts are at a bank that is also a creditor to you, you have borrowed money from the bank, the money in your account may be subject to a claim by the bank to pay the debt that you owe. This could be true whether or not you file for bankruptcy, a bank generally has a right to set off accounts against the debt you owe but rarely exercise that right against individual consumers. Most of the time a bankruptcy will prompt the bank to freeze the account and ask the bankruptcy court to allow them to take the funds and applies them to your debt.
