Question 1

What Happens to the Money in Your Bank Account When You File Bankruptcy?

Accepted Answer

When you file bankruptcy, money held in checking and savings accounts generally must be disclosed as part of your bankruptcy case. That does not necessarily mean the money will be taken. The important question is whether the funds are protected by an applicable exemption. The source of the money in the account can also affect what protections may apply.

Question 2

Are Wages in Your Bank Account Protected in Florida?

Accepted Answer

In some circumstances, yes. Florida law provides protection for certain qualifying earnings, and that protection may continue after the earnings are deposited into a financial institution if the funds remain traceable and identifiable as earnings. The protection available depends on the individual's circumstances and the source of the money.

Question 3

How Much Money Can You Have in the Bank When Filing Bankruptcy?

Accepted Answer

There is not one universal bank account balance that applies to every person filing bankruptcy in Florida. The amount that may be protected depends on the exemptions available to the individual and the nature of the funds in the account. The entire financial situation should be evaluated rather than relying on a single account balance.

Question 4

Should You Withdraw Money Before Filing Bankruptcy?

Accepted Answer

Withdrawing money from a bank account does not make the money disappear for bankruptcy purposes. Cash and financial transactions generally still need to be disclosed. Transferring money or assets in an attempt to keep them away from creditors can also create additional problems. Major withdrawals or transfers should therefore be carefully evaluated before filing.

Question 5

Can Your Bank Freeze Your Account After You File Bankruptcy?

Accepted Answer

A bank account can sometimes present additional issues after a bankruptcy filing, particularly when money is also owed to the financial institution holding the account. The bank involved, the type of debt, the source of the funds and the bankruptcy chapter can all affect what happens. Potential account issues should be reviewed before filing whenever possible.

Question 6

Does Chapter 7 or Chapter 13 Make a Difference?

Accepted Answer

Yes. In Chapter 7 bankruptcy, available exemptions can be especially important because nonexempt assets may be considered by the bankruptcy trustee. In Chapter 13 bankruptcy, debtors generally keep their property while completing a court-approved repayment plan, although the value of nonexempt assets can affect the plan.

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Florida Bankruptcy Resource Center

Straightforward Answers to Common Florida Bankruptcy Questions

Choose a topic below to learn more about Florida bankruptcy and how the process may affect you.

Property You Can Keep Bankruptcy Florida

Retirement Accounts Bankruptcy Florida

Bank Account Bankruptcy Florida

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Understand Your Options Before You File

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