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  1. #1
    Join Date
    Sep 2016
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    Default Debtor's Bank Account Frozen During Bankruptcy

    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?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Debtor's Bank Account Frozen During Bankruptcy

    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.

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