A debtor filed for bankruptcy and his bank accounts were frozen. Now he's having difficulty paying his bills, even as he's trying to complete a bankruptcy. Why would his accounts have been frozen?
A debtor filed for bankruptcy and his bank accounts were frozen. Now he's having difficulty paying his bills, even as he's trying to complete a bankruptcy. Why would his accounts have been frozen?
Some banks will freeze a debtor's accounts upon their filing for bankruptcy if the debtor owes money to the bank on other accounts -- such as a personal loan, car loan or mortgage.
There may be circumstances in which a debtor holds a considerable amount of cash, and the trustee seeks to freeze the cash assets in order to protect creditors.