Ohio-based bankruptcy attorney Adrienne Hines has shared advice on dealing with debts through a TikTok video. Hines advises against borrowing money from the bank where one holds their account. She explains that banks have access to a person’s financial activity and know everything about them. If a person defaults on a loan, the bank can quickly come after them since they have all the necessary information. Additionally, Hines highlights the issue of setoff, where banks can take money directly from a person’s account in certain situations.
According to Nolo, there are two main types of bankruptcy that individuals can choose from if they are unable to handle their debts. Chapter 7 bankruptcy allows for the liquidation of debts, erasing qualifying debts in three to four months. Chapter 13 bankruptcy, on the other hand, involves reorganizing debts and developing a repayment plan based on income and property.
The TikTok video has garnered over 717,200 views, with commenters sharing their own experiences. Some commenters mentioned situations where banks deducted money from their accounts to cover missed payments, leaving them without necessary funds. Others added that sometimes the bank where a person has an existing relationship might be the only one willing to lend them money.
It is important to consider Hines’ advice and be cautious when borrowing money from the bank where you hold your account. The knowledge banks have about a person’s financial activity can make them quick to take action if a person defaults on a loan. Taking steps to separate funds and explore alternative lending options may be beneficial in managing debts effectively.