Credit Card Companies, And Credit Unions, Banks Alike Can Freeze Your Bank Accounts

Category: Finance, Credit.

Filing for bankruptcy takes a huge chunk out of your credit report, and your future, your pride abilities to get credit.

So what happens to your savings and checking accounts when you file for bankruptcy? It is bad enough that you are going to have it on your credit report for several years afterward, and you do not want it to affect anything else to make your financial situation even worse. When you file for bankruptcy, it is because you owe money to your creditors, obviously. The way they see it, if you have any money stuffed away at all, it is theirs to take because you owe it to them. So if your creditors know that you have money in your checking or savings accounts, they will usually freeze those accounts and seize them so that they can get all the money they can out of you before you put them out by going bankrupt. Because this is, in a cold and heartless way, they have the, generally true right to freeze your account.

They basically have to get permission from the courts to do so, but many frozen accounts are a result of desperate creditors out to milk desperate debtors for all they re worth. Some creditors will not do so, but most will try by all means to get whatever money they can out of you so that the amount that they are having to just let slide is as small as possible. To freeze a bank account means simply that you no longer have access to your account. It basically ceases to be accessible, except if you want to make a deposit. If your checking account or savings account is frozen, that means that you no longer have the ability to withdraw from that account. Credit card companies, and credit unions, banks alike can freeze your bank accounts. Similarly, banks and credit unions cease to give you any kind of services once you have filed for bankruptcy, and they almost always remove your. membership from their particular credit union or bank, refusing to do any more business with you.

When you file for bankruptcy, the credit card companies that you may owe money to will have long since denied you access to your credit account, therefore giving you no ability to buy on credit. Why? Also, because you filed for bankruptcy and cost them money that you could not pay, that alone would be motivation enough to stop doing business with you. Well, because you took out bankruptcy, you are more likely to do it again, and of course they don t want to be giving you a loan in the future if it is uncertain that you will pay it back in full. Bankruptcy is rough in itself. If you want to do something about this, contact the lawyer who issued the freezing of your account, and see if you cannot work something out with him and the creditor you owe the money to. Sadly, it can affect your bank accounts too.

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