Can I Keep my Bank Account in Bankruptcy?

Keeping Your Bank Account When Going Bankrupt

Why It's a Bad Idea

When you file bankruptcy you will not be forced by your bank to close your bank account because they will be breaking the law if they do so.
However, as a licensed insolvency trustee, we recommend that you close your bank account before you go bankrupt and open a new bank account with a new financial institution who you have never held an account with before (such as a credit card, bank account, or loan).

Need Help Reviewing Your Financial Situation? Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770

or

Can I Keep my Bank Account in Bankruptcy?The reason for this is, that while bankruptcy will stop all collection attempts, it might take some time before all of your creditors are notified. Your trustee will notify your creditors immediately about your bankruptcy or proposal, however it can take time for the right people to receive notice of your insolvency, and changes can take time to take effect throughout the computer systems of your bank. If you have any pre-authorized payments your creditors might still attempt to take funds from your accounts, even after you have filed bankruptcy. With a new bank account, with a new financial institution, you will have a full fresh start when you go bankrupt. Even if you are pleased with your current bank account it is highly recommended to open a new account before you enter the bankruptcy process. Your creditors might make mistakes as well and if someone forgets to update the computer records, your bank still might attempt to take money from your account. If money is taken from your account without your knowledge, you might bounce your rent cheque or be unable to afford groceries or gas for your car. While you will be able to recover these funds by notifying your trustee, your financial situation can become more of a mess.

Can I Keep my Bank Account in Bankruptcy?

By opening a new account you can be sure to avoid all of these headaches and you can go on with rebuilding your financial future. If you owe money we recommend that you move your money from your account before going bankrupt. Filing a consumer proposal can help you with your bank accounts as well.

Need Help Reviewing Your Financial Situation? Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770

or

BANKRUPTCYCANADA

Get Your Free Consultation With a Licensed Debt Relief Expert Now!

Find out how you can quickly get out of debt by setting up a free consultation with us today.

Get out of Debt and have family bliss and happiness

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Legally Cut Your Debt By 80% And Stop Interest Charges

Stop Interest Charges Immediately
Unfreeze Bank Accounts
Stop Wage Garnishment
Stop Legal Actions

I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

Geoffrey,

Toronto