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What Does Your Bank Account have to do with Bankruptcy?

When you file for bankruptcy, you must list all the assets you own as part of the bankruptcy petition.  Your bank account is an asset, and an asset that must be listed.  This post details bank accounts, and how to protect bank accounts when you file for bankruptcy relief.

Bankruptcy Schedule B, or the schedule that lists all your personal assets, has a line-item for bank accounts and other financial accounts.  Most people have but a few accounts; some have quite a few accounts.  In any event, all accounts must be listed, and a value must be indicated as to funds held in the account.  In most cases, people have funds in their account running the range of less than $100 to more than a few thousand dollars.  But these bank accounts, and the funds contained therein, are mostly protected when you file bankruptcy by applying exemptions (or laws that protect property).

Particularly, the Federal Wildcard exemptions allow a person to protect up to $12,725 (or $25,450 for a married couple filing a joint bankruptcy) of any type of asset.  Therefore, in most cases, any funds held in a bank account ought to be protected entirely when you file for bankruptcy.

If you have any questions about bankruptcy and protecting assets, please feel free to call me today to set up a free in-office bankruptcy consultation.

 

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Tom Butcher

Tom Butcher

Tom Butcher is the owner and attorney at Butcher Law Office, LLC. He represents clients in financial distress in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Tom offers a friendly, respectful, and compassionate experience for clients who are in financial and legal distress. Rather than taking a mechanical approach to filing bankruptcy for clients, like other bankruptcy firms, Tom strives to offer a personal, one-on-one experience, where the client’s situation is of utmost importance. Tom believes this personal attention keeps him connected to the community, and serves his clients best during their bankruptcy.
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