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    #1

    Closing bank accounts

    I have my mortgage and a credit card with a substantial debt on it through Bank of America. The attorneys I spoke with told me that I needed to close my BOA personal accounts so they don't withdraw money from them or seize them when we stop payments/file for bankruptcy. I was told to open an account at a bank where I owe nothing in credit cards or loans.

    I opened a bank account at a new bank around the corner from my house. I have NO credit with that bank at all - I even refused the overdraft protection (a credit line) that they offered. It is a straightforward "totally free checking" account.

    Will this cause problems for me after we file? Will I have to list this account as a debt? Will they close my account? This will NOT be listed on the BK (other than as an "asset" type thing). Am I going to have to open another account at a different bank after we file?

    Geez, my head, she is spinning!
    Lisa C.
    Filing BK due to business insolvency.
    Tags: None
    #2
    The new bank account is an asset, not a debt. You'll only list it as an asset on the BK. Banks don't generally close accounts just because you filed BK, so you won't have to worry about that. I myself opened a new bank account for the same reason before filing, and I still have my pre-filing account.

    I noticed that you are filing BK due to business insolvency. For completeness: what I just said won't apply if you decide to file under Chapter 11 (quite an expensive proposition!). In that case, you'll probably have to close that account and open a debtor-in-possession account. (Those satisfy reporting requirements to the US Trustee.)

    Edit: I just read your past posts and noticed that you're filing a 7. Don't worry about the second paragraph...I'll leave it there for the curious among us, though.
    Last edited by bige1030; 12-26-2006, 04:13 PM. Reason: added comment
    DISCLAIMER: I am not an attorney. My posts are not legal advice. They are for information only. Please feel free to use them in an academic sense, as I simply wish to share with you what I have learned/researched.

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      #3
      We are filing a chapter 7 personal bankruptcy to absolve us of the business debts. The business is insolvent and will most likely be turned back over to the bank soon.

      Anyway, that makes me feel better! This whole scenario has been such a pain already and we've barely gotten started.
      Lisa C.
      Filing BK due to business insolvency.

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