More opinions:
Chap. 7 gives you several options when you deal with your cash accounts. Roughly speaking, you can keep $4,000. Any more than that will be taken by the court to pay your bills.
the banks credit card and your checking savings accounts are different. if you file bankruptcy they will check your available balance to see if you can make partial payments towards your creditors. only the IRS or government can freeze your accounts.
There are several different types of bankruptcy.
A Chapter 7; which eliminates most but not all of your debts, not including your home or other secured obligations at least up to the market value of the secured item.
A Chapter 13; which is a repayment plan including your home.
A Chapter 11; this type of bankruptcy is only for a business.
Contact your local bankruptcy attorney if you are interested in more information. I am not a legal representative, so my best advice to you is do your research first to see if this is your best option.
EVERYTHING you own and EVERYTHING you owe is included in the BK and must be reported. They are given different classes, some debts can't be discharged and some assets cannot be taken, and the assets are used to pay the liabilities. YOU CANNOT PICK AND CHOSE WHAT IS INVOLVED. You do not go bankrutp ona "a credit card". If you filed this way, you have committed a criminal fraud, the court will at least dismiss the case as soon as it comes to light...which as you see it will because yourr other creditors and assets are easily seen even by a credit report. Many banks have as part of their credit card agreement you made, that they may offset overdue debts on the card by use of other deposits in the institution. Of course, once you go BK, wherever those assets are they will be used to pay your debts. And if you move them within 2 years of filing, you will be expected to show where they are or what happened to them. If you try to get them out of your name to avoid their seizure, that of course is reversed and perhaps considered a fraud.
Your "savings"...which aren't really yours because you promised to use any money first to pay those you owed, and not to keep it for yourself...should be used by the BK to pay those who you actually owe it to. WHAT THE HELL ARE YOU THINKING! You think it is anything but absurd to NOT pay people and then keep the riches because you want savings? It ain't your savings...you saved nothing...you just stole and kept it. I DON'T CARE HOW INSULTING YOU MAY FIND THIS...YOUR TOTAL LACK OF ANY UNDERSTANDING MAKES YOUR OPINION WORTH LESS THAN...WELL APPARENTLY YOUR SWORN PROMISE TO PAY THOSE WHO YOU PROMISED TO AND RELIED ON YOU. You are bankrupt in many more ways than financial.
They will be frozen to be used to pay your debts. A basic, rough primer: BK is always done under Federal Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way. The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furniture and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that debt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not trust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently tried and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too
Yes. It has to be turned over to the bankruptcy trustee to be counted as an asset.
All ERISA qualified accounts are protected in a BK- meaning creditors cannot seize those accounts.
No they do not close your Checking or Savings account
Most checking accounts have no fees. Savings account has more fees than checking accounts because of the higher interest yields available in a savings account.
In the ePay function, how can you split a payment between your savings account and your checking account
In the ePay function, how can you split a payment between your savings account and your checking account
It wouldnt be wise to combine unless you are putting money from checking into your savings. A savings account is a little more protected and shouldn't be used as a checking.
savings account earns interest.
A savings account earns interest.
* Savings Account/Checking Account * Current Account * Fixed/Time Deposits * Recurring Deposits
It's easier to spend the money in a checking account.
Many checking accounts do not offer interest on the money in your savings account. This is a disadvantage because the money you put in a savings account will collect interest, where a checking account will not.
Generally a savings account pays more interest, but there are some checking accounts that offer rates that are very competitive to savings accounts.
Checking account