Question Banking after BK in California?

[Diesel73]

So, I'm filing a chapter 13 in California, I currently bank with Citibank, and I really like it there. I have a corporate account and a household account.

Both accounts are currently in good standing with the bank, however that is about to change once the papers are filed.

I will be including in the BK about $10,000 of a business line of credit that my corp owes to the bank. My current corp will fold after that. I don't owe them anything on the personal side. I never bounce checks.

Essentially I am doing the BK to strip the 2nd lien on a poor real estate investment made in 2007. Since I'm doing it, I'm lumping in all the debt that I can. Why not? Right?

My question is this: Do you think I'll be able to continue banking with them after the BK? Either Business or personal?

Any and all info and insights are greatly appreciated.

[HHM]

That is tough to answer.

If the business was still functioning, I would say that you would need to move bank accounts if you were going to default on a business line of Credit, but since the business is folding, I assume that means there will be no money in the business checking accounts.

As for the personal accounts, there is SOME risk. If you are personally guaranteed on the business line of credit (which you probably are), then they "might" have the right to raid your personal accounts to "setoff" the balance owed. The MOST conservative approach would be to switch banks to protect your cash assets.