Ordinary checking and savings accounts can stay open when filing bankruptcy. Whether the money in the account is protected depends on the type of bankruptcy filed and on the exemptions available, including the Illinois wildcard exemption.
Frequently Asked Questions
Can I keep my bank account open if I file bankruptcy?
Absolutely. There is nothing that limits you from being able to have your ordinary checking and savings accounts. The type of bankruptcy filed is going to come into play. In a Chapter 7 bankruptcy, the question is how much is in the account versus what exemptions are available to protect the funds in the account.
The state of Illinois has what is called a wildcard exemption, which is an exemption that can be used on a myriad of items, but one of those is your bank account. In a Chapter 13, there is again a wildcard exemption. But in a Chapter 13, the objective is not to try to liquidate any of your property. So in a Chapter 13, the bank account may in many cases be protected.
Are you struggling financially? Pratt & Maegli Law Firm in Rockford helps Illinois families and individuals explore Chapter 7 and Chapter 13 options with clear answers and a personal approach. Call (815) 315-0683 or visit rockfordbankruptcytoday.com to schedule a confidential consultation and take the first step toward real financial relief.