Info Center

Bank Accounts Following Bankruptcy Filing

Filing bankruptcy is not the end for your bank account; there are many options still available to you.
In most instances, you will be able to keep your bank account when you file bankruptcy. Financial institutions, like credit unions or banks, usually will not close your bank account when you file a bankruptcy unless you owe them money.

Even then, banks are less likely to close your bank accounts if they are in good standing. However, if you owe any debt to a credit union when you file a bankruptcy, most will close your bank accounts whether they are in good standing or not. 

It is a good idea to maintain a checking and savings account, but some people experience difficulty opening new accounts after bankruptcy. Some financial institutions policies against opening new accounts until more than one year has passed since he bankruptcy discharge is entered. Also, most financial institutions use a monitoring system called “Chex Systems,” governed by the Fair Credit Reporting Act, which notifies other member banks and credit unions if your checking account has a negative or overdrawn balance. This may make it difficult for you to open a new account at another financial institution. 

If you have been turned down for a checking account, your attorney may recommend inquiring about a savings account at a bank. Credit unions may have more stringent requirements when opening savings accounts, such as requiring a monthly direct deposit, a minimum balance,
or a monthly fee. They may also restrict the number of transactions you are allowed to make during each month. Speak with your Boleman attorney about your options. Many times, your attorney will recommend opening a new bank account before you file your bankruptcy to avoid these complications.


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Richmond

Interstate Center
2104 W Laburnum Ave, Suite 201
Richmond, VA 23227
804.355.2057
Fax: 804.358.8704

Virginia Beach

Convergence Center III
272 Bendix Road, Suite 330
Virginia Beach, VA 23452
757.313.3000
Fax: 804.358.8704

Hampton

2 Eaton Street, Suite 106
(Corner of Settlers Landing)
Hampton, VA 23669
757.825.5577
Fax: 804.358.8704

VPLC
Martindale-Hubbell
American Bankruptcy
Tidewater Bankruptcy Bar Association