Should you close your bank accounts before filing bankruptcy?

To your first question, there really is no reason to close your bank accounts. Unless you have over $5,000 deposited, you probably won't need to worry about that cash being taken, because it should be covered by wildcard and cash exemptions. That being said, double check the available exemptions in your state, find out if you can use federal exemptions, and determine which would be better for your situation.

Banks With Credit Cards

This could be problematic. If your checking and savings accounts are at a bank from whom you also have a credit line, the bank may have a "right of set off". This means the bank may be able to seize cash from a savings or checking account to pay unpaid debts on another account. Obviously, this can only occur if all the accounts are at the same bank.

The way around this is to move your cash, or at least as much as you want to protect, to another bank. I know it's a pain, but it will protect you once you begin your bankruptcy case.

Talk to a Bankruptcy Lawyer before you do anything to make sure your activity will not be considered as bankruptcy fraud by the courts. Make sure your lawyer practice bankruptcy law regularly in your states, so that he or she will be familiar with the local courts and how they operate. You would be surprised how some good legal advice can help you keep all of your property while getting rid of unsecured debts and protect your ability to rebuild credit after the bankruptcy discharge is complete.