The Bank Account Dilemma
One issue you may need to cover with your bankruptcy clients concerns the bank account(s) he or she may have at the time of filing. The moment your client files for bankruptcy, the funds within the bank account(s) become the property of the bankruptcy estate established by the filing.
The issues faced by your client in this dilemma could be two-fold. First, the bank may freeze the account once it has notification of the bankruptcy. Second, checks that were written on the account may be returned unpaid due to the fact that the account has been frozen.
To avoid these unpleasant events, your clients should consider using cashier's checks or money orders to make last minute payments. You may also want to suggest to your clients to limit the amount of money in the bank to a sum that he or she can afford to have frozen for an extended period of time.
Providing these tips to your bankruptcy clients may prevent even greater financial distress during the bankruptcy process.
