Does A Chapter 13 Trustee Keep Tabs On Your Bank Accounts?

Are you concerned if your trustee can check your bank accounts? Under the U.S. Bankruptcy Code, a Chapter 13 trustee can review the state of your finances. That would naturally include your bank accounts.

However, there’s no reason to worry about a trustee having access to your bank accounts. If the trustee does discover any issues with your account or your use of funds during the bankruptcy case, they may take action. That could include modifying your payment plan or even seeking the dismissal of your bankruptcy case.

In this article, learn about the scope of what a trustee can do with your bank account under a Chapter 13 bankruptcy case.

Does Your Chapter 13 Bankruptcy Keeps Track Of Your Bank Account

How Often Does Your Trustee Check Your Bank Accounts

Your trustee may check your bank accounts as part of their functions stipulated in the Bankruptcy Code. 

The typical process for this is for your trustee to include a copy of your documents regarding your finances at the filing of your Chapter 13 petition. They will then verify if the statement you made regarding your finances is accurate. This verification step will be thorough and your trustee can exercise their rights to look further and beyond your documents if they see some irregularities.

Do note that the trustee can exercise their functions to review your finances even after your initial filing. They may do this when something comes to light that may indicate you have not been thoroughly transparent. So, it’s unwise to try and conceal any funds from the bankruptcy court when filing for Chapter 13.

Your Rights Over The Funds In Your Bank Account

You will be able to use the rest of the money which you earn in any way you choose. This is true long as you leave enough funds in your chosen account for your trustee to pay your scheduled loan repayments on time. 

For example, you can still plan a local or international vacation. Typically, you use the disposable income which you have left over after paying your bankruptcy payments. Filing for bankruptcy will not automatically prevent you from traveling overseas.

You’ll even be able to use the money in your bank account to start a business. The court may allow this so you will have a sustainable source of income. 

How To Ensure That Your Additional Funds Are Not Seized

Just like in any bankruptcy filing, you must be completely transparent when it comes to revealing all of your finances. You don’t want your trustee to mistake funds that you are allowed to keep as funds that you’re trying to hide from the court.

It’s worth noting that during the process of filing for Chapter 13, you will be required to reveal documents related to your finances. For example, you’ll need to show the current state of each of your bank accounts. This also includes your state and federal tax returns for the past four years. You may also need to present documents that are associated with any investments which you may currently hold.

Hiring A Chapter 13 Bankruptcy Attorney

Know Everything You Need To Know About Your Bank Accounts And Chapter 13 BankruptcyA bankruptcy attorney can help in filing for Chapter 13 and creating a payment plan. This plan allows you to pay off your debts over time, rather than having to make one large payment. Your bankruptcy lawyer will work with you and your creditors to negotiate a payment plan that is manageable for you. 

Once the plan is approved by the court, your creditors cannot seize your funds or assets as long as you make your payments on time. In addition, your bankruptcy attorney can help you navigate any issues that may arise during the repayment process and ensure that your rights are protected. Hiring a bankruptcy lawyer can provide you with the legal guidance you need to prevent the seizure of your funds and get back on track financially.

A team of experienced and skilled bankruptcy attorneys at Lincoln-Goldfinch Law is ready to assist you in gaining control of your funds. They are well-versed in the bankruptcy process and can ensure that your rights are protected.


Your trustee may exercise their legal function to review your finances including your bank accounts. However, they are not permitted to touch any of your funds. Unless, of course, you have stipulated that in your repayment plan. Thus, it is highly important that you remain transparent with your finances. You can do this by working closely with your bankruptcy lawyer and your Chapter 13 trustee.

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