If I go bankrupt or file a consumer proposal should I change banks?
If you owe your bank any money for anything then the answer is yes.
One of the unfortunate by-products of claiming bankruptcy or filing a proposal is that you usually need to sever your relationship with your bank if you owe them any money. The debts could be for an overdraft, line of credit or even a credit card. We realize that changing banks can be stressful and cause some inconveniences, but in the long run, it will cause you less headaches.
Firstly, if you have any funds in your bank account, the bank has a right of set-off against those funds which means they can apply them to the loan. Secondly, after the filing of a bankruptcy or a proposal, your account is likely frozen, so if you deposit funds in that account afterwards, you may have problems accessing them. That may lead to some hardships by not being able to meet your obligations such as rent, food etc. and quite possibly, NSF fees. To get those funds returned would then require the Trustee to intervene. Banks are large institutions and getting the money back takes time.
In my experience it is best to have a bank account with an institution that you owe no money to. Why take the risk of some major inconveniences for the sake of keeping that banking relationship. The inconveniences that can arise override the banking relationship.
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