Banking Information

Be Careful Which Bank You Use!

⚠️ Never use Wells Fargo, Bank of America, or Truliant Credit Union. These places can be really tricky if you file for bankruptcy. Some people have had their accounts frozen just for filing for bankruptcy! IMO these banks are also EXTREMELY predatory, so never use them.

⚠️ A credit union, and sometimes a bank, will close your checking account if you file bankruptcy on a debt you owe them. Plan ahead and open up a checking account with a bank you owe nothing and change your direct deposits ASAP. 

👍 It’s better to use a credit union, but make sure it’s one you don’t owe money to; but a bank is fine too.

💵 If you owe money to the same bank or credit union where you keep your checking or savings, they can just take it! That’s called a “set-off.” One person lost $10,000 this way because they didn’t follow my advice and switch banks in time.

🏦 Credit unions can also link your loans together, which is called “cross-collateralization.” That means if you have a credit card and a car loan with them and stop paying the credit card (or bankrupt it), they might take your car, too. Yikes!

✉️ Ask your credit union by email if your loans are “cross-collateralized”. Do NOT call or visit in person. You need their answer in writing so you have proof. If it is “cross-collateralized” you will have to either pay for both or lose both in a bankruptcy.

Social Security & Disability Money – Protect It!

💰 If you get Social Security, Social Security Disability, or VA Disability, that money is safe in bankruptcy – but only if you’re careful.

🚫 Don’t mix it with other money – not even for one second! If you do, it could lose its protection.

✅ If the account where your benefits go ever had other money in it, empty it out completely. After that, only let your Social Security, Social Security Disability, or VA Disability money go into that account. Do not re-deposit it or mix in cash.

🔒 Keep that account clean! Mixing in any other money could make all the money in there unprotected and you could lose it!

See:

Our Google Reviews