Best Bankruptcy Lawyers in Apex, NC

What Happens to Your Savings Accounts if You File for Chapter 13 Bankruptcy in Raleigh, NC? In general, you don’t have to worry about your savings and checking accounts if you file for Chapter 13 bankruptcy in Raleigh, NC. You can even open new bank accounts as long as the court approves it. You can even have your Chapter 13 payments deducted automatically from your bank account to make the process more convenient. However, Chapter 13 debtors are not completely immune to having their bank accounts garnished. Here’s a closer look at what you need to know about your savings and checking accounts if you’re considering Chapter 13 bankruptcy in Raleigh, NC. Chapter 13 Protects Your Bank Account Funds (in Most Cases) Chapter 13 bankruptcy is often called a “reorganization” bankruptcy because it allows debtors to reorganize their debts and create a repayment plan to pay back their creditors over time. Unlike Chapter 7, which liquidates your assets to pay off your debts, Chapter 13 lets you keep your property and assets. This includes your savings and checking accounts In some cases, Chapter 13 may also allow you to keep funds in your bank account in excess of the exemption amount. The caveat is that you’ll need to work these excess funds into your Chapter 13 repayment plan. Banks, Credit Unions & the “Set-Off” Privilege While Chapter 13 bankruptcy offers protection for your bank account funds, it’s not 100% immune from creditors.