We often times recommend that if you file bankruptcy or make a consumer proposal that you get a new bank account at a new bank. Why do we suggest that?
If you owe money where you bank, we recommend that you open a new bank account at a new bank.
When you file bankruptcy or make a consumer proposal, the bank receives notice and they have the right to offset the money that was in your bank account. They may also put a freeze on your money so you can’t take any money out of your bank account.
Therefore, to avoid these problems and take control of your personal finances we recommend opening a new bank account at a bank where you don’t owe any money.
Regardless of whether you are considering filing personal bankruptcy, making a consumer proposal or attempting to dig yourself out of debt on your own, opening a new bank account at a bank where you don’t owe any money is an essential first step to helping you get a fresh start because:
The new bank is not a creditor; they will not receive copies of your consumer proposal or personal bankruptcy documents and therefore if you file, it will not affect the way the bank treats you.
You will have the ability to develop a new banking relationship.
The new bank will not freeze your account or apply your future deposits toward outstanding accounts or overdraft since you don’t owe them any money.
If you are in debt and have questions, contact us today. We are here to help!
