Do You Need To Change Banks If You Are Going Bankrupt?

Bankruptcy Attorney

What you do financially prior to your bankruptcy can be taken into account during your bankruptcy proceedings. Some legal professionals that deal with bankruptcy suggest that you may want to change your bank prior to your bankruptcy filing.

One of the reasons for doing this is that if you owe money to your bank where your mortgage or your equity loan is or your line of credit, then the bank can make the auto withdrawal to make sure that they get their payment.

Financial Freezes

Some banks will automatically freeze an individual’s bank account when they hear that the client is going bankrupt. The other thing that you have to consider is that if one of your creditors has a judgment against you such as a warrant in debt then they can actually garnish your bank account. However, they will not to be able to do this once they have been notified of your Ohio bankruptcy.

What you want to do is make sure that you go to an entirely different bank and not just set up a new account in the same branch. It really is important to understand what the policy of your bank may be regarding a bankruptcy.

One of the stumbling blocks that that some individuals run across when they are trying to change banks is because of their poor credit rating and they run into difficulty setting up a new account. There are some banks that are really strict about this; however there are many other institutions that are not.

One thing you do not want to do is take your money and put it into the account of somebody else. This can have a really detrimental effect on your bankruptcy action. Also at the same time if you have any old bank accounts that are still open but don’t have any funds in them make sure that you close these off as well. Speaking with a qualified bankruptcy attorney will help to guide you through all of the steps that you need to take in order for your bankruptcy to proceed smoothly.

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