Bankruptcy Question & Answer Forum - Canada

Author:		Anonymous
Date:		Dec 20, 2007
Question:		If I include my bank overdraft in my bankruptcy, what will happen to my bank account? Will they close it or just stop the overdraft privilege? Would it be better to just go out of that bank and start with another one before I begin the process? I also have a VISA card and chequing account with another bank. I am including the card in the bankruptcy so what will likely happen to the bank account?
From:		Alger & Associates Inc.
Date:		Dec 20, 2007
Answer:		Generally people will open a new bank account at a new bank prior to making an assignment in bankruptcy. Once you make the assignment in bankruptcy, your bank may have the right to set off any funds held in your account against other oustanding indebtedness. Vanessa Grant phone: (403) 296-2977 vgrant@alger.ca