Can I open a new bank account while I am bankrupt in Ontario?
Yes. As a matter of fact, it is strongly
recommended that you open a new bank account with a new bank before going
bankrupt in Ontario. Why? Because you want all payments to your unsecured creditors to stop. You do not want to risk having one of your creditors attempt to take an un-authorized payment out of your account, and the best way to do that is to open a new bank account at a new bank (where you don't owe any money).
A bank is not allowed to refuse to open a bank account for you (unless they believe the account will be used for illegal purposes).
Even with these rules, some banks may be
reluctant to permit you to open a new bank account once
you are bankrupt. Therefore, it is a good idea to open
a new bank account before you go bankrupt in Ontario,
which also gives you ample time to have your payroll deposit
and other items transferred to your new account before the
bankruptcy starts.
Your trustee will be able to answer any further questions you may have about opening a new bank account.
.gif){kind=spacer}
