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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

What Happens To My Checking & Savings Accounts If I Go Bankrupt?

When filing bankruptcy, one may be including a debt owed to their bank. It is commonplace to have a line of credit with the same bank as one holds their money. When you file for bankruptcy, what happens to these accounts?

After filing for bankruptcy, it is not uncommon for your online banking to be shut off. This is not indicative of any intent to close your bank account entirely, but rather is an effect of the bank’s effort to comply with the automatic stay which prohibits any and all collection from you during your bankruptcy. An online statement that reads “Balance owed” can be interpreted as one of these efforts at the collection of debt so rather than risk running into problems with the bankruptcy court the bank will simply shut off online access.

Banking

However, if you receive a letter from your bank that states that they intend to shut down your account, there is nothing that can be done and you will need to make arrangements to bank elsewhere. On the bright side, most banks will give you at least a few weeks to act on their notice so you can transition into a new bank and continue making and receiving payments.

It is much more likely that if you owe money to a bank you also have a checking account with it will shut down your account after filing. However, if you do not have a line of credit with them, most banks will allow you to continue banking with them even after filing bankruptcy.

How do I Prepare?

If you discuss this with a bankruptcy attorney, it is not uncommon for them to instruct you to open a new bank account somewhere that does not hold debt in your name. This way, transitioning important processes like automated payments and direct deposits before filing will minimize any interruptions afterward.

If you have questions about the bankruptcy process and how it might affect your partner or spouse, please feel free to reach out to your Yuba City bankruptcy attorney at (530) 797-4402.

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