How to Protect Bank Accounts in Bankruptcy
Lisa is an individual with a need for a way to pay off multiple debts and she has opted to file for bankruptcy as a last resort.
The various types offer different solutions.
Keep in mind that there are ways to protect bank accounts in bankruptcy.
This often raises the question of the type of assets that can be used. Many people wonder how money saved in bank accounts is affected during this process.
Lisa must file for Chapter 7 if she wants to keep the money she has saved in her bank accounts.
During the process, certain types of property may be excluded from sale. It’s important for Lisa to consult with an expert before closing any of her bank accounts.
Closing her banking facility is an option prior to filing. Opening a new one can also work, while enabling her to pay her debts off.
She needs to get advice on how to protect bank accounts in bankruptcy.
Lisa must be able to provide reasoning for any large withdrawals from her account before she closes it. If not, this will be interpreted as her hiding additional assets that could be sold to raise money.
Lisa must consult with experts regarding the money in her account while ensuring that she pays all of the creditors that she owes. She should toe the line however, by ensuring that she doesn’t conceal any of her assets during the process.
She should become more informed about the entire process, so that she still has enough money to live off while undergoing bankruptcy. Becoming informed means asking the right questions and also doing all that she can to make sure that she can actually pay her debts off. She should make the process as easy as possible, while also being able to still pay the expenses that she has.