Opening A Bank Account After Filing Chapter 13

If you have chosen to file for personal bankruptcy by filing for Chapter 13 and are interested in what will happen to your current bank accounts and whether you’ll be open to open new bank accounts after your bankruptcy, continue reading. In order to discover how to manage your bank accounts once you have filed for bankruptcy. As well as how to open a new bank account, if your long-term bank is unaccommodating to your needs.

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How To Manage Your Bank Accounts After Filing Chapter 13

Creditors Taking Your Funds In Your Bank Account

If you were to file Chapter 7 for personal bankruptcy your bank does have the right to take some of your saved funds, without your permission in order to settle some of your debts. However, if you choose to file for Chapter 13, once you have filed for bankruptcy your funds will be protected from creditors who are looking to obtain funds to pay off your outstanding debts.

Opening A New Bank Account

Can I open a bank account after filing Chapter 13? If you’re curious about whether you can open up a new bank account after you have filed for Chapter 13, the answer is yes. Although you will need to obtain court approval, in order to do so.

Challenges Opening A Checking Account

If you would like to open a checking account, instead of a savings account, you may encounter difficulties. Though there are no regulations in the Bankruptcy Code that will prevent you from opening a bank account, keep in mind that your chosen bank may choose to check your credit report. If this happens, your chosen bank may choose to prohibit you from opening a checking account. In this case, you have two key options, you can choose to open a savings account instead, which involves a much simpler sign-up process or you can apply for a checking account with other banks in your area. Who may choose to approve your application for a checking account.

Opening A Savings Account

It is very unlikely that a bank will choose to prohibit an individual from opening a savings account, as a result of disclosed bankruptcy. Especially as a bank takes only zero risk if an individual who has filed for personal bankruptcy decides to open a savings account that doesn’t have a line of credit tied to it. So if you’re looking to set up a new bank account as quickly as possible, opt to open up a savings account, instead of a checking account, in order to expedite the process.

Key Reasons To Open A New Bank Account

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You May Not Be Able To Access Your Pre-Existing Accounts

Unfortunately, there are banks that may choose to restrict individuals who have filed for bankruptcy from accessing their accounts. If your bank chooses to deny you access to your existing bank accounts after you file Chapter 13, you may be left with no option but to sign up for a bank account with a new bank. It is however worth noting that banks who choose to restrict bankrupt individuals from accessing their preexisting bank accounts have misinterpreted the regulations in the Bankruptcy Code.

If you find yourself unable to access your pre existing bank accounts, in order to shift your money to a new bank, your best option is to talk to your bankruptcy attorney. As they will be able to work with your current bank in order to allow you to shift your existing funds to a new bank. As there are no regulatory reasons why you should be prohibited from accessing your own money after you’ve filed for bankruptcy.

Your Current Bank Might Try To Take Some Of Your Funds Without Your Expressed Permission

It may also be a smart idea to open up a new bank account if you have an outstanding debt with your current bank account. As there is a small chance that your bank may choose to command your funds to help offset some of your debts. Whereas if you successfully open a bank account with a bank where you have no existing debts, your new bank will not take any of your funds, without your permission.

Using Your Bank Accounts To Pay Your Debts

One of the easiest ways to keep to your loan repayment schedule that was drafted when you filed for Chapter 13 is to approve an automatic payment schedule which will help you make your loan repayments on time. So that you’ll continue to meet the specifications of your bankruptcy. For example, while some of your debts may be cleared as a result of your decision to file for personal bankruptcy, you may still need to make monthly mortgage repayments, if your reason for filing Chapter 13 was to keep some of your assets. Such as your primary property. Other payments which you are still required to make include court-ordered alimony payments and child support payments.

If you would like your chosen trustee to take out necessary funds from your bank account, in order to meet these same obligations, they’ll also be able to make regular payments to pay off your debts, on your behalf.

What To Do If You Are About To File Chapter 13

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If you are yet to file for Chapter 13, your best option is to talk to your bank manager about whether your bank will allow you to easily access your funds, after you file for bankruptcy.

If you ascertain that your current bank won’t accommodate your needs after you file for bankruptcy, it’s a wise idea to open a new bank account with a more accommodating bank and to transfer your current funds to this new bank account, before your lawyer helps you file for Chapter 13.


In order to safeguard the money which you may have saved in a checking account or a savings account and to ensure that you’ll be able to manage your funds in the future, it’s important to ensure that you have access to your current bank account or a new bank account after you file for Chapter 13. For more information, get in touch with our professional team of bankruptcy experts.

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