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Yes, once the bankruptcy is filed checking and savings accounts become part of the debtor's assets and the accounts will be "frozen" until the trustee determines the amount of funds that are not exempt under BK law and can be seized to pay creditors.

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โˆ™ 2006-03-06 02:20:47
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Q: If you are not paying your creditors will you lose the money in your bank accounts in the bankruptcy?
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Related questions

Do you list a landlord on the list of creditors in a bankruptcy?

You do if you owe him money. You must include ALL creditors.

What is the money owed to creditors called?

Accounts Payable

Can you withdraw from a 401K without consequence while in chapter 7 bankruptcy in Washington State?

NO, and you shouldnt. Pension and 401 accounts are out of reach of creditors. If you are to withdraw from your 401, that money would be subject to seizure by the trustee to pay off your creditors.

What stage of accounting is known as accounts payable?

Accounts payable is money owed by a company to its creditors.

How do you escape bankruptcy?

There are ways we can escape from bankruptcy; Selling some of your assets. Sell whatever you can spare and use the money to pay off your debts.Ask creditors to help you avoid bankruptcy. Let your creditors know you are having financial difficulty and want to avoid bankruptcy..

Should the balance of a creditor you filed chapter 7 on show zero on your credit report after it has been discharged?

No. Bankruptcy discharge does not mean the money isn't owed. It means that creditors cannot attempt to collect it. The money will always be owed. Accounts included in bankruptcy will stay on the cr marked included in bankruptcy, for the full seven years.

If you have an IRA can they take money from it when you go into bankruptcy?

IRA's are exempted personal property. Creditors can not touch this money to pay debths.

If you inherit money after a ch 7 bankruptcy how much time must pass before I have to pay said money to my creditors?

If your bankruptcy is's over. There is no claim to what ever you get in the future.

Does bankruptcy protect you from paying back taxes?

No, the IRS always gets its money.

Can you declare bankruptcy after inheriting money?

Yes, but that money would become part of the bk estate- which would be used to pay off your creditors.

If you are not married but live with someone are they counted in the means test for bankruptcy?

When you are living with someone they are not included in your bankruptcy. If you are paying them rent, then the money you pay is an expense and will be considered for bankruptcy.

Do creditors get money from settlement if no claim was filed during bankruptcy?

They would legitimately be entitled to be a party to the settlement but would need to apply to the bankruptcy administrator for consideration in this instance.

Difference between accounts payable and creditors?

Accounts payable are usually the suppliers to a company who are providing credit terms on purchases. Sundry creditors are any other creditors which dont fall into the usual categories on the balance...account receivable- money coming in for profit account payble-money going out for a expense .Accounts payable refers to liabilities owed to creditors from whom you've made a purchase. Notes payable refer to liabilities owed to investors from whom you've borrowed money by issuing a debt...

If you file for bankruptcy then shortly after you come into a decent sum of money can creditors go after that money?

The money might be included in the bankruptcy even is a discharged has occurred. The time between the discharge and the receiving of the money would be the deciding factor. If the bankruptcy has not yet been discharged the money might be included in the procedure as assets, unless it held exemption status.

Could Creditors take your dads car that you paid for because he wasn't able to?

No creditors can not take the car, even if the father can not pay the money for it, as long as you are paying the full money they should not have any trouble.

Why can a trustee take your income tax return if you are filing a chapter 7 bankruptcy which relieves you of your debt and does the trustee give the money to the creditors?

The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.

What can occur when a person owes more money than he or she can earn or pay to creditors?

A person can lose everything he or she owns when creditors move in to collect what they are owed. A person might have to go through bankruptcy.

Are you safe from creditors if you buy the assets of someone in bankruptcy without knowing they are bankrupt?

No, you are not. When someone files bankruptcy the title to their property is held by the trustee in bankruptcy. The bankrupt cannot sell any property therefore, if they do, the title is not clear. You may lose the property to the creditors if someone tracks it down. You would then be out of the property and any money you paid for it.

If you have credit debt and that institution files bankruptcy do you still have to repay?

Yes. The bankrupt institution will pass your debt to its creditors that it owed money to.

Does having money saved in your accounts make creditors move favorable to giving you a loan?

Yes, the amount of money you have saved is one of the things that they look at. It's even better if you have the money invested in IRAs or money market accounts. Good Luck!

What qualifies you to file for bankruptcy?

You can qualify to file for bankruptcy if you owe a substantial amount of money to your creditors and/or car loan and mortgage companies. It is not worth filing bankruptcy for small debt as bankruptcies range from 900 dollars to a couple thousand dollars.

Does bankruptcy remove an eviction?

if its related to the bankruptyc, you can include it. and the creditors will have to remove it or flag it for removal in 7/8 yrs because an eviction is related to owing money or a summons, and a bankruptyc filing will/can squash those writs of order to pay. You have to manually add that into your list of creditors when filing for the bankruptcy.

If you owe somebody money and they are filing bankruptcy will the court go after you to get the money what will happen?

The court certainly tries to protect and get all assets, that includes any money owed the bankrupt, to disburse to creditors.

What is the preference period on bankruptcy?

A preference period is based on the relationship that a debtor has with a creditor. The debtor cannot transfer money to non-insider creditors during a 90 day period before filing for bankruptcy. The preference period for transfers made to insider creditors can be increased up to one year.

When is it necessary to declare bankruptcy?

It is necessary to declare bankruptcy when a person cannot afford to continue paying for bills and other things they need. A person may declare bankruptcy if their business is not making any money.