Should I open a new bank account prior to filing

[aa06a47]

Am curious as to opinions on if I should open a new bank account prior to filing bankruptcy. My current bank will not be happy with me at the time I file.

Also, can you open a new account after bk? Seems I have read that some banks will not allow you to open an account after you have been in BK?

[keepmine]

If you are including your present bank as a creditor in your bk, you'd better find a new bank home prior to filing. Nothing illegal about opening a new account at all as long as you disclose it on the bk petition.

[SinkingFast]

An alternative would be to file with your present acct, then go the very next day and open a new acct with another bank. BK won't have time to show yet.

[annikasaunt]

Someone told me that your bank accounts are considered assets and the bk court trustee can seize any money in any of your bank accounts and use that to pay creditors! Is this really true? I owe my bank for a loan that I am listing on my petition. I have already opened another account at another bank to continue paying my other payments. Ex: utilities, phone, etc...
Will this account really be affected?

[SinkingFast]

Sometimes banks put it in the fine print if you have a loan or CC with them they can debit your checking and/or savings to cover the debt. To be on the safe side, having an acct at a different bank is a good idea.

But,...........

You don't want any money of any amount in that other bank acct either. All cash you have on hand the day you file, you'll need to be able to cover with exemptions. That's money in your pocket, and cash in checking and/or saving accts. Monies that are not exempted can be seized by the Trustee to pay Creditors.

To get a better handle on your cash flow, start paying your bills with Money Orders and/or Cashier's Checks. If you have a Debit card, use it to purchase groceries, gasoline, drug store, etc. You don't want to file and have any uncashed checks floating around out there that can bounce due to insufficient funds.

Most of the bills we pay, the checks are cashed within a week. Even ones that are mailed, 10 days tops usually. Our Landlord is a different story. Sometimes she takes 3 weeks to a month to cash our rent checks.

Instead of writing checks to anyone any more, we use Debit Card, cash, Money Orders, and get a Cashier's Check from the bank to pay our rent to our Landlord. That way, the money doesn't stay in the bank account waiting for a check to come. It's already gone and the bills are paid.

One thing your attny and the Trustee may take a look at is recent bank statements. If you've been carrying a balance prior to filing and then suddenly have no money, questions will be asked. You also have to disclose any bank accts you've closed in the last year.

Wal-Mart is the cheapest place around to buy Money Orders. 39 cents each. Word of caution here tho. If you purchase $1000 or more in Money Orders at Wally World, they'll write your name and ID info down in a book they keep. If you have several bills and the total comes to more than $1K, buy a few Money Orders here and there to get your bills paid.

[NASCAR20FAN]

Someone told me that your bank accounts are considered assets and the bk court trustee can seize any money in any of your bank accounts and use that to pay creditors! Is this really true? I owe my bank for a loan that I am listing on my petition. I have already opened another account at another bank to continue paying my other payments. Ex: utilities, phone, etc...
Will this account really be affected?

I'm new to all of this, but I thought that the funds that you have in you bank accounts were safe. I normally don't have alot of money in my account anyways. I even need to use some money from my IRA to cover the costs of bankruptsy.

[SinkingFast]

I'm new to all of this, but I thought that the funds that you have in you bank accounts were safe. I normally don't have alot of money in my account anyways. I even need to use some money from my IRA to cover the costs of bankruptsy.

If you can't cover it with an exemption, the Trustee can take it.

[DisneyGirl]

We opened a new account just before filing. Our atty told us we could keep my husband's paychecks direct deposited and they wouldn't touch them. Since that money is used to pay our monthly expenses. She said to keep no more than $100 in savings. Any other money you have, stick it in your sock drawer for now.

[aa06a47]

We opened a new account just before filing. Our atty told us we could keep my husband's paychecks direct deposited and they wouldn't touch them. Since that money is used to pay our monthly expenses. She said to keep no more than $100 in savings. Any other money you have, stick it in your sock drawer for now.

Not worried about hiding money, I don't have any to hide. I do have a question, can you open a bank account after filing bankruptcy? It has been so long since I opened one, I have no idea of what qeustions they ask.

[SinkingFast]

We just went thru it 6 months ago. We got off easy because we came on referral from a relo assitant agent who'd been hired by Hubby's company.

Now, you have to show picture ID and they will make copies that will be kept on file. They may want to see your physical Soc Sec card. Banks have several post 9/11 requisites now that they didn't have before. The Gov't and the Bank wants to be sure you aren't a terrorist or laundering money for terrorists.

Since we've moved several times before, I always open the acct with a Cashier's Check. That way the new bank knows the funds are good and you're money is available much more quickly.

[DisneyGirl]

Not worried about hiding money, I don't have any to hide. I do have a question, can you open a bank account after filing bankruptcy? It has been so long since I opened one, I have no idea of what qeustions they ask.

Me either. My sock drawer has....well....socks.

To answer your question, I think it will depend on the bank. If you were writing bad checks or anything like that, you may have a more difficult time. I still say do it before you file and you won't have anything to worry about.

[lilgoose]

Yep, open either right before or the day after....

My friend just told me that she is having a problem with opening up a new account with a bank in a different state (she is moving away ). What happened was she listed a bank on their bk because they said she owed fees for bounced checks (totally the bank's fault) and she refused to pay for their mistake. So....she listed them and had the debt discharged.

Now, said bank is telling her that it doesn't matter that it was discharged, said bank is well aware that the $$$ has been wrote off, but they have put her on some "check system" that shows up with ALL banks. This "system" keeps any bank from allowing her access to any accounts, even if her hubby opened one and added her name to it, she still cannot have access!

So, even though the debt was discharged (legally) they are disallowing her access to ANY bank until she PAYS the money to them!! Needless to say, she is filing papers against the bank.

This will work in her favor, but it is a pain in the butt in the process. This is a time issue that the "papers" can't erase. Nor can the process erase the embarrassement issue and the hassels that she will incur.

I would presonnally open a new account and leave nothing over and above what you need to pay bills with.

Good Luck!

[SinkingFast]

File one day. Open the new acct the next day.

Filing day fixes the BK estate to that day.

Open a new acct the next day. Not part of the BK estate, AND the BK won't have had time to get on your Credit Reports yet.

Just a thought.

[aa06a47]

File one day. Open the new acct the next day.

Filing day fixes the BK estate to that day.

Open a new acct the next day. Not part of the BK estate, AND the BK won't have had time to get on your Credit Reports yet.

Just a thought.

I think what I'll do is go ahead and open a bank account as soon as I get my tax refund, then start having my checks direct deposited in the new account. After I get established with the new bank, I will file bk.