What Happens To Your Safe Deposit Box After You Declare Bankruptcy?
What happens to your safe deposit box after you declare bankruptcy?
If you're like most people, you probably have a safe deposit box at your bank. Most of us don't make frequent use of it, but it's handy to be able to store important papers or heirlooms in a secure place. When you declare bankruptcy, though, the U.S. Bankruptcy Code requires that any safe deposit box be turned over to your creditors—they are then allowed to go through its contents and take whatever they want.
The safe deposit box loophole is one of the more controversial parts of the Bankruptcy Code. Some say it's unfair for people who are struggling with debt to lose their possessions and bear the shame of declaring bankruptcy; others feel that allowing debtors to keep their valuables would only encourage more reckless spending and prevent them from ever working their way out of debt. The truth is that the law is set up so that an individual's safe deposit box is treated like any other asset they own—if they can't afford to pay off their creditors with all of their assets, they'll lose their safe deposit box and everything else.
If you have any questions or need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
