A debtor defaulted on some loans, and the bank has now frozen his accounts. If he files for Chapter 7 bankruptcy, will the bank have to release the freeze on his accounts and allow him to access his money?
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A debtor defaulted on some loans, and the bank has now frozen his accounts. If he files for Chapter 7 bankruptcy, will the bank have to release the freeze on his accounts and allow him to access his money?
The debtor should consult a bankruptcy attorney to determine if Chapter 7 bankruptcy is the best option. Although the automatic stay that results from a bankruptcy filing will stop further collection activity by the bank, the money in the bank account may end up going to other creditors. Depending upon the debtor's income, assets, and available exemptions, the debtor may benefit from Chapter 13 bankruptcy.
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