I get asked this question quite a lot. I think clients worry about doing something that will affect their bankruptcy; and most Trustees stress that a client should ask their attorney questions before they do anything financial.
Yes, you can open a bank account while you are in a bankruptcy. There is nothing in the Bankruptcy Code or Court Rules that would prohibit a person filing a bankruptcy from opening an account. A bank account is essentially just another place for you to store your money. Banks are sometimes more secure and convenient, so there are advantages to opening a bank account.
However, you should be aware that when you seek to open a bank account many banks and credit unions will run a credit report, and this may affect your ability to open a checking account. If you cannot get a checking account, you should be able to open a savings account.
You should read some previous blogs below regarding potential issues with a bank account and how a credit could get access to your bank account funds if you are not in a bankruptcy:
- How will Bankruptcy affect my bank account
- What is a Bank Levy?
- Is Certain Property Exempt from Garnishment of Your Bank Account?
Cynthia T. Lawson is the Managing Partner of the Bond & Botes Law Offices location in Knoxville, Tennessee. She holds a Bachelor of Science from East Tennessee State University, and a Juris Doctorate from University of Memphis, Cecil C. Humphreys School of Law. She currently serves as a Mentor for the Moment in bankruptcy.Read her full bio here.