Freeze my bank account

August 10th, 2013 by Questions

Does the trustee freeze my bank account and take any funds in there at the start of the bankruptcy?
Do I need to remove the funds if they are allocated for rent/food?

Posted from: British Columbia

Questions

One Response to “Freeze my bank account”



, A licensed trustee said:

This is another example of some of the mis-information that is out there about bankruptcy. You are allowed to operate a bank account and retain sufficient funds to cover your basic living expenses – your trustee will not freeze and clean out your bank account unless you have significant funds on deposit. You have to be able to live…

It is likely that your trustee will ask to see your bank statement for the period just before and after you file. If you do withdraw a large sum of money just before you file you will have to provide proof of what you did with it and it is likely your trustee will ask you to either put it back, or you may end up paying more into your bankruptcy.

BEFORE you start playing with your bank accounts speak to your trustee – in that way you are less likely to get into trouble…

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)