Should I notify the bank that I am contemplating bankruptcy? 7 Answers as of February 04, 2011

My business in contemplating filing Chapter 7, do I notify my bank that I am contemplating filing or do I avoid contact?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
This depends on your individual facts and circumstances. Please call me to discuss.
Answer Applies to: California
Replied: 2/4/2011
Maclean Chung Law Firm
Maclean Chung Law Firm | David H. Chung
You are not required to notify your bank that you are contemplating bankruptcy.
Answer Applies to: California
Replied: 11/30/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
They will receive notice of your bankruptcy case once you file. There is no need to tell them you are contemplating bankruptcy.
Answer Applies to: California
Replied: 11/30/2010
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
If you have a loan with the bank and stop paying it, it would make practical sense to tell them that you intent to file bankruptcy, but there is no legal requirement to do that.
Answer Applies to: Illinois
Replied: 11/30/2010
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
I would not bank with a bank you owe money to. As for notice to your bank, they will find out if they are a creditor.
Answer Applies to: California
Replied: 11/29/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    I do not think it really matters, but I don't see a strong reason to inform them ahead of time. Is your business a corporation? If so, you need to carefully consider why you would be filing a Chapter 7 since corporations do not receive discharges of debts in chapter 7 cases.
    Answer Applies to: California
    Replied: 11/29/2010
    The Shakoori Law Group
    The Shakoori Law Group | Rachelle Shakoori
    You do not have to notify them of the bankruptcy. When you file the court will send them a formal notice.

    Also, keep in mind that if your business is a corporation, it will not receive a discharge and in many cases you can close the corporation without a need to file bankruptcy.

    I highly recommend that you retain an experienced bankruptcy attorney in your jurisdiction to guide you through the complexities of bankruptcy law and procedure.
    Answer Applies to: California
    Replied: 11/29/2010
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