Can I Continue Using My Bank Account Once I File Bankruptcy?

Can I continue using my bank account once I filed for bankruptcy?

In a Chapter 7 Bankruptcy, the Chapter 7 Trustee becomes the owner of all debtor’s assets upon Bankruptcy filing. However, in most cases, especially if you retained a Bankruptcy Attorney, the funds in the bank account are claimed exempt pursuant to California exemption statutes so that the Chapter 7 Trustee will not liquidate debtor’s bank account. Therefore, debtor can continue using his or her bank accounts.

In a Chapter 13 Bankruptcy, debtor remains in possession and control of his or her properties. Debtor can continue using his or her bank account.

However, if you owe money to a bank that you have an account with, especially a credit union, Muoi Chea Bankruptcy Attorney in Sacramento, California advise you to close the account because the bank will attempt to offset the funds in the account against the balances owed. If you have a bank account with Wells Fargo Bank, Muoi Chea Sacramento Bankruptcy Attorney advise you to close all accounts with Wells Fargo Bank because they interpret Bankruptcy codes to put them as a custodian of your bank accounts for the benefit of the Bankruptcy Trustee. They will freeze your account until the Bankruptcy Trustee gives then written authorization to release the funds, which the Trustee might hesitate.

For your convenience, Muoi Chea Sacramento Bankruptcy Attorney has offices in Sacramento, Stockton, and Fairfield, California to answer your Bankruptcy questions. I am accepting clients in surrounding cities below:
Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo, Yuba City, Lodi, Galt, Manteca, Modesto, Tracy, Davis, Woodland, Elk Grove, Carmichael, Citrus Heights, Orangevale, Antelope, Fair Oaks, West Sacramento, Roseville, Rocklin, Rancho Cordova, Lincoln, North Highlands, Folsom, El Dorado, Ripon, Fairfield, Vacaville, Dixon, Vallejo, Woodland, Davis, Winters, Oakdale, Newman, Patterson.