Unfortunately, I cannot legally advise you to close a bank account or not. Closing a bank account(s), in which has monies on deposit, will eventually be discovered by the would be trustee designated to review your Bankruptcy petition. A trustee will be scrutinizing all your financial documentation including bank accounts. He or she will discover that an account has been closed. This may be viewed as an intentional act to conceal monies from any potential creditors who may have an interest in those monies during your bankruptcy proceedings. Any and all monies and assets in your possession at the time of the bankruptcy proceedings are subject to collecting to satisfy any outstanding debts prior to receiving a "discharge" of your debts. I would recommend seeking the advise of a licensed, bankruptcy attorney in your state to consult you in putting your "financial house" in order prior to filing any bankruptcy proceedings.

Answer Applies to: Texas
Replied: 12/1/2011

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It depends. Definitely do something about bank accounts where you owe money to the bank, i.e. line of credit, credit card, car loan. I advise my clients to take out all but $5. I tell clients with Wells Fargo or Chase accounts to take their funds out even if they don't owe them any money. Otherwise, you should be OK.

Answer Applies to: Colorado
Replied: 11/30/2011

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No. You shouldn't need to close your bank account prior to filing.

Answer Applies to: California
Replied: 11/29/2011

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There is no reason to close bank accounts before filing bankruptcy. However, there are pitfalls to avoid. If you owe a debt to the same lender as your bank account there may be a right to offset whereby you lose the money in your account at the time of filing bankruptcy. Also, if your lender and account are the same company the funds in the account might be frozen. Some people simply take the money out of accounts until the case is filed. After the case is filed you can put the money back and there will be no right to offset. Regardless, you should keep a minimal amount of money, say $25, to keep your account open.

Answer Applies to: California
Replied: 11/29/2011

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Only if you bank with Wells Fargo and have $5,000.00 or more in the bank. None of the others will bother you.

Answer Applies to: California
Replied: 11/29/2011

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Lately, banks are wiping out accounts especially if you owe that bank money. I would suggest closing the account.

Answer Applies to: California
Replied: 11/29/2011

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That is a myth. Your bank accounts will not freeze from filing bankruptcy.

Answer Applies to: New York
Replied: 11/29/2011

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The only bank that has frozen accounts after filing bankruptcy is Wells Fargo. However, it is never advisable to bank where you owe a debt if you are going to file bankruptcy. Thus, if you owe money to your bank, then change banks. If not, then you can continue to bank without any issues.

Answer Applies to: Colorado
Replied: 11/29/2011

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Sometimes you need to and sometime you don't. It depends on what bank has your account and whether you owe them money. It can also depend upon which set of exemptions you elect to take. There is no general rule and it varies from case to case.

Answer Applies to: Texas
Replied: 11/29/2011

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Bank accounts do not freeze upon filing.

Answer Applies to: Illinois
Replied: 11/29/2011

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Usually, closing a bank account is not advisable. If you owe that bank money, you will not want to leave money in that account when you file.

Answer Applies to: Virginia
Replied: 11/29/2011

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No they should not freeze your account if you disclose it.

Answer Applies to: Florida
Replied: 11/29/2011

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Just the opposite. Keep your account. Once you file, many banks may not let you open an account.

Answer Applies to: New York
Replied: 11/29/2011

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Hiding assets is a crime, thus closing an account in contemplation in anticipation of Bankruptcy filing could entire criminal penalties.

Answer Applies to: New York
Replied: 11/29/2011

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No, you do not need to close your bank account before filing for bankruptcy. If the account is at Wells Fargo, make sure that you have less than $4,000 in the account on the day the case is filed or they will put an administrative hold on the account and the Trustee will need to release the hold before you will get access to the funds.

Answer Applies to: Texas
Replied: 11/28/2011

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First of all, do not file without a lawyer! The answer depends on the case, and you can badly screw up here. A few but not most banks freeze accounts, and the answer depends on where you live and if you owe the bank money. Bear in mind that since opening an account after bankruptcy is hard, closing one when you didn't need to could leave you with no way to have a bank account. On the flip side, you may be able to keep an account in other ways. So, quit relying on your friends, get a lawyer, and be sure you actually get this, and the rest of the case right.

Answer Applies to: Georgia
Replied: 11/28/2011

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Some banks will freeze a checking or savings account until the bankruptcy trustee determines whether or not the money in the account is exempt and whether the trustee has or doesn't have any interest in the amount deposited. If your account is at one of these banks, you may want to keep the amount in the account low and then redeposit after you have filed.

Answer Applies to: California
Replied: 11/28/2011

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To my knowledge Wells Fargo is the only one freezing bank accounts and I believe that they have said that only if the balance in the accounts is $5,000 or more. There is a case pending on this issue but Wells Fargo just did it to a client. Usually the trustee will immediately tell the bank to release the money (assuming you reported the bank account in the petition and exempted the money). Also, if you owe money to the same bank where you have the account then the bank can claim a set off (which means they have a lien on your money to pay the loan) and take your money, particularly if the loan is a personal line of credit. Otherwise, there is no need to close any accounts and any accounts you close will have to be reported in the petition and you have to show what happened to the money. It cannot just disappear, particularly if a large amount.

Answer Applies to: California
Replied: 11/28/2011

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No. only Wells Fargo will freeze accounts.

Answer Applies to: Florida
Replied: 11/28/2011

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Some banks do freeze your account if it exceeds an arbitrary amount. Not all. Whatever you do, make sure you account accurately for your funds even if you withdraw them and now should be counted as "on hand".

Answer Applies to: California
Replied: 11/28/2011

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Bank accounts are not frozen because of bankruptcy. You do not have to close your account, but you should consult an attorney to determine the exempt status of funds on deposit and the risk of potential "setoffs."

Answer Applies to: Indiana
Replied: 11/28/2011

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You do not have to but you have to consult an attorney which type of accounts are subject to it.

Answer Applies to: New York
Replied: 11/28/2011

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Closing your bank account or not depends on other issues. Do you have a credit card with current charges issued by the bank or credit union where you have your bank account. Then closing the bank account or reducing the balance to a minimum of $10 is suggested. If there is no credit card issued by the bank where you have your bank account, and if you have no loan at that bank, then you may keep the same account.

Answer Applies to: Florida
Replied: 11/28/2011

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The only bank that I know of that freezes accounts when its depositors file bankruptcy is Wells Fargo/Wachovia. You do not want an account with them or with any bank that you owe money to. Other than that you should be fine.

Answer Applies to: California
Replied: 11/28/2011

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No, this is not necessary. Your bank accounts will NOT be frozen when you file bankruptcy. You will be required to provide information on all bank accounts you currently have (as well as those you've closed in the last year) though, so hang onto your bank statements as they come in. I would suggest not making any changes on your personal finances (i.e. closing accounts, transferring assets, etc.) before talking to consumer bankruptcy attorney. Too often such changes cause more problems, not less.

Answer Applies to: Oklahoma
Replied: 11/28/2011

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This is why you should always consult a professional. Bank accounts do not freeze because you file bankruptcy. Usually, filing bankruptcy is the only way to unfreeze accounts against which a citation to discover assets has been issued. As for whether you should close a bank account before filing bankruptcy, without more information it is not possible to answer that question. Consult a qualified bankruptcy attorney to find out how to handle your particular situation.

Answer Applies to: Illinois
Replied: 11/28/2011

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If you owe your bank any money, it's best to close your account and move to another bank. Even if you don't owe your bank money, some banks like Wells Fargo or Union Bank may freeze your account anyway. If you bank with either of those, you may want to move your account regardless.

Answer Applies to: California
Replied: 11/28/2011

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Wells Fargo Bank and Union Bank freeze your bank account immediately upon your filing bankruptcy. If you bank at either one of these banks and need access to your money in the 30 day period after filing bankruptcy, you should remove your money from these 2 banks prior to filing bankruptcy. To my knowledge, these are the only 2 banks that do this in California.

Answer Applies to: California
Replied: 11/28/2011

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