Banks generally cannot take your money just because you have filed a Chapter 7 or Chapter 13 Bankruptcy.

When your petition is filed an "automatic stay" goes into effect an all activity to collect on any debts you have must stop. This includes phone calls, letters, foreclosures and most asset seizures and garnishments. Also included within the automatic stay is any action a bank may take to collect money which they believe they are owed from you. Occasionally a bank may have the legal right to “set-off” any debts you have with the bank with any deposits you may have on account if there is a set-off agreement related to your accounts.  Before acting or exercising their rights on the set-off, the bank must first get permission from the court by way of motion, for relief from the automatic stay.

Under California bankruptcy law, if you are married, you have the option of filing for bankruptcy solely, individually with your spouse, or jointly.  Each option carries legal and economic benefits and drawbacks.  In the majority of circumstances, a debtor may file and leave their spouse out of it, and the filing should have little to no effect on the non-filing spouses credit.  Additionally, the non-filing spouse may receive a substantial benefit from their spouse’s bankruptcy discharge.

Payday loans provide instant cash when you need to pay pressing bills. The problem is, they can also lead to a downward spiral of debt due to their high interest rates. One recent study found taking out payday loans increases your odds of filing for bankruptcy.

It is not uncommon for someone to have equity in their home, but still be struggling financially or missing mortgage payments. Credit card debt and medical bills only add to the burden. It is still possible to take full advantage of the bankruptcy laws and keep your home, even if you have equity in it.