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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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we currently have credit card debts as well as checking account

Resolved Question:

we currently have credit card debts as well as checking account and safe deposit box a bank of america we have heard that they can attach all accounts and belongings if we file bankrupsey plus we are un happy with boa and the manupliating service charges if we change banks strickly for direct deposit of my social security benefits and his bi weekly pay check for part time work can that account be bothered
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.


Thank you for your question. I am happy to assist you.

The assets that you may retain in a bankruptcy depend upon the Chapter bankruptcy you file and the state exemptions.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Tennessee:

I hope that the information which I provided was helpful to you.

Customer: replied 7 years ago.

did not really answer my question what i am trying to find out is if i need to close all checking and savings accounts befor filing or can i continue direct deposit in a new bank account without worry about them being frozen for duration of the proceedings

Expert:  Ellen replied 7 years ago.
You can open a new account for the social security. As per the link above, social security is exempt and thus you can typically retain the proceeds.

There is not a specific exemption for your other accounts and thus may be lost in a Chapter 7.
Ellen and other Bankruptcy Law Specialists are ready to help you