If you are about to file bankruptcy it is a smart idea to find a new bank

A lending institution is allowed to take for itself for the money you are obligated to them by the money you have in accounts held by them. For instance if you have money in Bank of America and you have a equity loan, signature line or a mortgage they can use the money you have in their accounts and hold on to it for themselves.

Credit Unions are quick to do this as well one of the promptest is America First in Utah. One thing a credit union might do that banks cannot do is use money in the accounts to pay the credit unions credit card accounts. It is a smart idea to get your money out of banks and credit unions you owe money to if you foresee you are not going to be able to stay current on your obligations at that particular bank or credit union.

If you have money in a Wells Fargo even if you don’t owe them any money, Wells Fargo will freeze your bank account when they learn about the bankruptcy. They think bankruptcy law requires them to do this even though no other bank thinks that way. It is a smart idea to close your Wells Fargo Bank account if you are close to bankruptcy.

Once a creditor has a judgment against you they can garnish your bank account. Creditors will look at the last check you wrote them and they will send garnishment papers to that bank. It is not fun to have your bank accounts garnished so If you think a creditor has a judgment against you do not keep more money then you have to in your bank accounts.