Should I notify the bank that I am contemplating bankruptcy? How? 10 Answers as of May 15, 2015

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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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
They don't care about you "say" you are going to do. Filing is the action that matters.
Answer Applies to: California
Replied: 5/15/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Wait until after you have filed your bankruptcy petition.
Answer Applies to: Wisconsin
Replied: 5/14/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Just because you are thinking of filing bankruptcy will not change any actions from your bank, they adjust their responses when you actually file
Answer Applies to: New York
Replied: 5/13/2015
Ronald K. Nims LLC | Ronald K. Nims
I would advise against it. ?Generally, advance knowledge by a creditor that you're considering bankruptcy might give them the chance to sue you or freeze your account.
Answer Applies to: Ohio
Replied: 5/13/2015
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
Is there any value to you in notifying the bank? What would it accomplish which would be of benefit you? Unless there is value to you or you would obtain a benefit in notifying the bank, there is no reason to do so and may even be detrimental. Whether you advise them or not has no affect on filing bankruptcy or obtaining a discharge.
Answer Applies to: California
Replied: 5/13/2015
    Danville Law Group | Scott Jordan
    There is no reason to contact your bank. Your business should not, however, borrow any money. In fact, if you owe your bank any money, your business should switch its bank to one that it does not owe money to. Also, is the business contemplating a Chapter 7 or 11? Preparation for either is key and should begin well before the filing. I would be happy to discuss this with you if you want.
    Answer Applies to: California
    Replied: 5/13/2015
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Call them and give them your attorney's information, with the fact that you will be filing a Chapter 7 BK.
    Answer Applies to: Colorado
    Replied: 5/12/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    There is no advantage to notifying your bank before you actually file for bankruptcy, especially if you owe them money. You should also not attempt a business bankruptcy without legal help. It can be very complicated.
    Answer Applies to: Oregon
    Replied: 5/12/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    I usually let the bank find out about a bankruptcy through the official court channels. Creditors hear people falsely claim that they will file bankruptcy all the time and are justifiably suspicious until they receive word from a reliable source. However, there can be an extraordinary reason why you might need to provide the creditor with advance notice. But let your attorney do the communicating.
    Answer Applies to: Nevada
    Replied: 5/12/2015
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    Before you do anything speak with an experienced bankruptcy attorney. Nothing good ever comes from giving your bank advance notice of a possible filing.
    Answer Applies to: Massachusetts
    Replied: 5/12/2015
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