Can a bankruptcy filing immediately unfreeze a bank account?
On One Hand: Yes, It CanAccording to the Schachter Law Firm, filing for bankruptcy will result in an unfreezing of your bank accounts once the bank receives the paperwork. Filing for bankruptcy will also stop any wage garnishments or harassment from creditors. This is true of a Chapter 13 or a Chapter 7.On the Other: You Have to Alert CreditorsWhen filing for bankruptcy, you have to alert your creditors of the process. Once you file, bankruptcy law prevents them from contacting you about the debt or from holding your assets. You or your trustees must send copies of the filing to the creditors, or they can continue to hold your bank account.Bottom LineCreditors cannot hold your bank accounts after you file for bankruptcy, whether it is a Chapter 7 or a Chapter 13.
