Can the bank take any money in your accont??
I wanted to confirm whether or not a bank with which you have a bank account and have debt which is being declared in a bankruptcy proceeding can then at any time after the papers have been filed drain any new monies that come into your account?
For example: all the proceedings for the bankruptcy are going and all assets have been disclosed, your normal pay goes in by direct deposit with the outline from the trustee that you have to give so much of it to them for distribution… can the bank just take it all out to pay off their portion of the debts?
At our firm, we recommend that you open a new bank account at a new bank when you go bankrupt. In our experience, that is the only way to prevent money from “accidentally” disappearing from your bank account.