by David B. Ross (Ross & Ross, LLC)


Do I Change Bank Accounts before filing bankruptcy from the perspective of a Bankruptcy and Consumer Attorney

It is amazing the wealth of great questions people ask an attorney when they are considering filing bankruptcy. Here is one the comes up often: “Should I take my money out of the bank before filing bankruptcy.” When we hear this question, there are really two things that a consumer could be asking. The first is, “can I hide my assets by taking them out of the bank?” For the record, it is illegal to hide assets in bankruptcy and could subject you to severe consequences. The second question is a legitimate one – will the bank take or freeze my account if I leave the money in the bank.

The short answer is “maybe.” If you owe money to the bank and also have a savings account, checking account or other assets there, then it is advisable to close the account and put your money in another bank. Why? So the bank doesn’t try to satisfy the debt through your funds. If you move the funds, you can guarantee that you will retain control over them. On the other hand, if you do not owe then there is probably no reason to move the funds.

You can visit our web site and contact us for more information about dealing with creditors and debt relief. As always since federal law requires a disclosure from bankruptcy attorneys here it is “we are a debt relief agency that helps people get relief by filing for bankruptcy under the bankruptcy code.”

From offices in Coudersport, Potter County, Pennsylvania, the attorneys at Ross and Ross, LLC serve the personal injury, bankruptcy, social security disability, divorce and family law needs of Western, Northwestern, Central and North Central Pennsylvania including the communities of Coudersport, Galeton, Shinglehouse, West Branch, Smethport, Port Allegany, Bradford, Roulette, and Wellsboro, as well as Potter County, McKean County, Tioga County, Cameron County, Bradford County and other areas of Western PA and Central PA.

***Legal Disclaimer: The contents of this site are for informational purposes only and do not constitute legal advice.  No lawyer-client relationship exists until one of attorney attorneys meets with you and agrees to accept you as a client.