| Author: |
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Visa |
| Date: |
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November 7, 2002 |
| Question: |
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I understand a bank/financial institution has a right of offset which is not stopped by bankruptcy proceedings. Is this right of offset nullified (?) at time of discharge? If not, looks like one should never ever again open an account with that particular bank?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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November 7, 2002 |
| Answer: |
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A bank has the right to offset funds sitting in an account at the date of bankruptcy. If funds go into the account after the filing date, they cannot be offset and must be returned to you if taken. To avoid any problems with banks attempting offset we recommend changing accounts to an institution where you have no debt.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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