In bankruptcy, your assets are used to help pay debts before they can be discharged and you are free of them for good. While everyone worries about their house and car, most people don’t think about what will happen to their bank accounts during the bankruptcy process. Without your bank account, how can you pay for things that you need?
These are the types of questions that bankruptcy lawyers answer when building your case. In this video, St. Cloud, MN bankruptcy lawyer Bill Kain of Kain + Henehan provides answers to the question concerning bank accounts when filing bankruptcy.
“You have to be careful as far as your bank accounts are concerned. The first potential problem is if you have a credit union account and you owe the credit union money. When you file a bankruptcy case, the credit union is going to assume that you’re going to cost the credit union a financial loss. If you cost the credit union a financial loss, they have the right to close your account, and they will. The first question is, is there money in a credit union account and the credit union is also a creditor? That does not apply to chartered banks, state banks or federally chartered banks. They can’t, as a matter of course, close your account, even if you owe the bank money.
There’s one bank, and I’ll say it’s Wells Fargo, that’s the name of the bank, that has a policy that if you have $5,000 or more on deposit with Wells Fargo, they will then freeze your bank account until the bankruptcy trustee instructs them to open the account up again. Letting the attorney who’s representing you know where your bank accounts are located, giving accurate information as well as if you owe a credit union money is absolutely important to do this. For the most part, for most people, your bank accounts are untouched if you file a bankruptcy case.”
See If Bankruptcy is the Right Option for You
You probably have a thousand questions about bankruptcy, starting with, “Can it help me out of this situation without losing everything?” Get the answers that you need by scheduling a free consultation with St. Cloud, MN, bankruptcy law firm Kain and Henehan.
Kain + Henehan is a bankruptcy law firm with attorneys serving clients across all of Minnesota with personal bankruptcy. Call 612-438-8006 or use our online form to learn more about bankruptcy, and how we can help you get your head back above water.