WHAT WILL BANKRUPTCY DO TO MY BANK ACCOUNT?
Posted on 05 02,2013
Once you file and receive a Bankruptcy Order, the process begins and all of your assets fall under the jurisdiction of the Official Receiver. They will order you to stop using all of your bank cards and check books, unless you use one of them for all of your living expenses. For a period of time your bank account could be frozen, which means that you will need to open up another bank account for your income and expenses. No matter whether you apply for a bank account before or after your Order is issued, all your accounts will still be frozen. Once the bankruptcy process begins, you should be able to use your alternate account.
If you had an overdrawn account when you filed, the debt you incurred will just be added into the total of your bankruptcy debts. For those that had joint bank accounts with their spouse or partner, both of your credit scores will be affected by the bankruptcy and both of you could be asked to contribute money towards your debt.
Any and all money that you have within your bank account at the time of bankruptcy is considered an asset which can be used to pay off your debts you owe. Your assets are frozen at the time of your Bankruptcy Order, but your Official Receiver can work to get you some of the money to help with everyday costs. Having a Virginia Beach bankruptcy lawyer with you from the start of your case could significantly help you as you seek out relief from your financial stress.
Our firm can represent your case and work with the Official Receiver to make the bankruptcy process as smooth as possible. Allow us to take charge and remove the strain off of you and your family. We have handled over 17,000 cases in the past 17 years and we strongly believe in helping you experience a new beginning. Do not hesitate to contact our office in Virginia Beach, Norfolk or Newport News today for a free initial consultation that is absolutely risk-free and confidential.