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Frequently Asked Questions

What happens to a bank account during bankruptcy?

When you file for bankruptcy, the bank can freeze your accounts and then recover at least part of the loan. However, if you have exemptions available to you, you may be able to keep all or some of the funds. Find out what to do if the bank freezes your account after filing for bankruptcy.

Is bankruptcy so bad?

Bankruptcy is not inherently bad or good, but it is an important protection for honest consumers who find themselves in big trouble with debt. A small minority of filers try to abuse the bankruptcy process to hide assets and cheat creditors.

Should I file bankruptcy?

Under some circumstances, bankruptcy is not the best option. You should not file for bankruptcy if the bulk of your debts are not dischargeable. Debts that are not dischargeable include child support arrears and certain court judgments, such as those based on fraud or breach of a fiduciary duty, and certain types of tax debts.


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