Answers.com > Wiki Answers > Categories > Business & Finance > Personal Finance > Money Management > Credit > Credit and Debit Cards > If someone files for bankruptcy can the Credit Card company take money out of your checking account to try and retrieve some of the debt after they were informed you were filing bankruptcy?

If someone files for bankruptcy can the Credit Card company take money out of your checking account to try and retrieve some of the debt after they were informed you were filing bankruptcy?

In: Credit and Debit Cards, Banking, Money Management, Credit, Commercial Bank and Checking Accounts [Edit categories]

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No, once a bankruptcy is filed an automatic "stay" is in place, and creditors cannot pursue any collection action. Even outside of bankruptcy, a creditor cannot arbitrarily garnish a debtor's bank account. The creditor needs to file and win a lawsuit, be granted a judgment and then enforce the judgment as a bank account garnishment.

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First answer by Macky. Last edit by Macky. Contributor trust: 5186 [recommend contributor ]. Question popularity: 19 [recommend question].

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