Beware the power of the banks in debt collecting

While reading through some of the other bloggers and lawyers about important issues of the day, I came upon wise advice/warnings from the Intellectual Conservative Arizona about the power of the banks.

Sometimes debt comes on pretty unexpectedly, but other times it’s a slow and predictable process you can see coming. Debt is never a comforting thing because it always makes you feel like there is something nagging you, but if you’ve found yourself in a position where you can’t afford to make payments to certain creditors, it’s important to take a careful look at those creditors and your bank account because some banks have the right to take out money without giving any prior warning to pay off debt you owe. This tactic is called the bank’s right to setoff.

When you open a checking or savings account, there’s usually some clause in the mountains of fine print that explicitly says the bank can take out money from your account if you owe it to them. Before you start panicking, it’s key to note that they can usually only do this when you owe money to that specific bank, whether a bank-financed auto loan or credit card debt to the same bank you have a checking account.

So, if you’re having some financial troubles and are thinking about filing for bankruptcy, you will want to close your bank accounts or the money in them could be seized. This isn’t fraudulent advice because for some, the little money in their checking account is used for food and essentials, so having a bank seize the money could be detrimental.

Don’t wait until you’re finding yourself in the position where you are unable to pay off your debts and fear the bank may take your funds. Consult an experienced Tucson bankruptcy lawyer today for your best options.