Bankruptcy and Bank Accounts in Minneapolis, Minnesota
If bankruptcy is something you’re considering or have already filed, you might be wondering how it will affect your bank account. It depends. It depends on a number of factors: where you bank, whether you owe the bank money, and if your account is in negative balance.
Not every bank will treat bankruptcy the same. Most credit unions, for example, will close your account if you have any debts to them at the time of filing. In most credit unions you have to sign a document stating that you will not cause a credit union loss. Even if you plan to pay your debt, filing for bankruptcy will result in a loss for your credit union because the discharge includes all of your debt. Many banks, but not credit unions have a different policy, and will allow bankruptcy debtors continue to hold their accounts. If you have a bank account and owe money to that bank, you should talk with your attorney about the pros and cons of keeping it.
If you have a negative balance in your bank account at the time of filing, the bank is likely to close the account. When you file, the debts that you had up until the filing date are considered your debts. You should not worry if you bank with a bank to which you owe no debt. The bank will not have any reason to close your bank account.
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If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit
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