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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My wife and I are considering filing Chapter 7. We both

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My wife and I are considering filing Chapter 7.

We both travel for our jobs (with expenses put on our own bank issued "debit" card that's tied to our checking account) that also functions as a credit card up to the total funds currently in the account.

Upon the filing for Chapter 7, are bank accounts (and any debit cards associated with them) frozen or is any type of hold put on them? If so, typically how quickly might that happen after filing?

As you can imagine, we're concerned about being somewhere away from home and finding ourselves in a position of having no availability of funds.

Your thoughts?
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*


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Typically upon the filing of a chapter 7 bankruptcy, the debtor must not continue to use any of the accounts or cards associated with the accounts. This is because the Chapter 7 estate is determined as of the date of filing. Typically a chapter 7 debtor opens a new bank account the day after filing
Customer: replied 3 years ago.

Just your opinion....what is your experience, do banks typically have an issue with opening a new account for someone who has just filed bankruptcy? If our current bank didn't incur any potential loss due to our filing, I wonder how agreeable they'd be in opening a new account for us?

Yes, a bank typically would not open a new account if you tell them you just filed the bankruptcy. However there is not a requirement to my knowledge for you to inform a bank official that you filed bankruptcy the day before
Customer: replied 3 years ago.

Since you responded I've found differing opinions on this subject with some stating that as long as you have a $0 balance in a current checking account on the day of filing when the bankruptcy estate is established and that bank is not named in the BK as a creditor, there is nothing legally preventing you from continuing to use that account.

Customer: replied 3 years ago.

Another option suggested is to open an account elsewhere, pre-filing and just keep a $0 balance with no activity on the account until after filing.

Yes – that is another possible alternative. However typically a bank does require a deposit at the time the account is opened.
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