Debt and Bankruptcy
Banking
Bank of America

Can the bank seize assets in the bank during a bankruptcy?

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Wiki User
April 12, 2005 2:42PM

If creditors believe the person is trying to remove funds from accounts to keep them from bankruptcy proceedings; creditors can petition the court to freeze all accounts/assets. A bank cannot arbitraily seize account funds unless the depositer has a loan with the bank which includes a set off provision. Even then the bankruptcy trustee can request the funds be returned and included as assets in the bankruptcy.