Can Digital Bank Accounts Aid in Personal Bankruptcy Applications?
With the rise of internet banking and mobile app-based account setups, digital banks like KakaoBank, Toss Bank, and K Bank have become integral to many people’s financial lives. However, when it comes to filing for personal bankruptcy, questions often arise about how these virtual accounts can be properly documented and submitted as evidence. Despite the evolution in banking, courts still prioritize ‘clarity of transaction history’ and ‘authenticity of documents’ when evaluating bankruptcy applications. Therefore, applicants need to prepare these documents as diligently as with traditional bank accounts.
Legal Recognition of Digital Bank Accounts
Digital bank accounts from institutions like KakaoBank, Toss Bank, and K Bank are recognized legally as valid for transaction records. While they lack a physical passbook, users can print or save these records in PDF format for submission. The court does not require a physical passbook, but the clarity of the account number, account holder’s name, and transaction details must be evident in the documents submitted.
How to Print Digital Bank Statements
Within digital banking apps, users can access detailed account information through ‘Account Management’ or ‘Transaction History’ menus. For instance, KakaoBank allows users to save their entire transaction history in PDF format after setting a specific period, while Toss Bank offers options to export data as Excel files or images. The critical information required includes:
- Account Holder’s Name
- Account Number
- Transaction Dates, Amounts, and Balance Flows
If these conditions are met, screenshots can be accepted as evidence, though PDFs are preferred for their reliability. It’s also advisable to include the app’s name and the date of retrieval on the document for added credibility.
Highlighting and Annotating Essential Transactions
Simply printing out transaction details might not suffice for bankruptcy evaluations. It is crucial to highlight or annotate transactions related to the bankruptcy, such as salary deposits, credit card payments, or loan disbursements and repayments. Using highlighters or notes to clearly identify these transactions can significantly reduce the time court officials spend on analysis, thereby increasing the application’s credibility.
Frequently Asked Questions: Are Screenshots Enough?
While screenshots might be accepted for temporary purposes, they often lack the formality and consistency required for bankruptcy applications. Monthly images could be incomplete or redundant, and some courts may prefer more formal submissions, such as printed PDFs or Excel documents. Therefore, organizing each account’s statement into a printed format is usually the safest approach.
Preparing Proof of Account Ownership
Given the absence of physical passbooks in digital banking, additional documentation may be required to verify account ownership. Capturing screens of ‘Account Holder Information’ stored in the app or attaching a partial view of the registered name and social security number can serve as proof. Additionally, obtaining an account creation confirmation from banks like Toss or KakaoBank can further substantiate ownership.
Conclusion: Digital Accounts in Bankruptcy Applications
Digital bank accounts do not pose a disadvantage in bankruptcy proceedings. In fact, with proper organization, they can offer a more straightforward and transparent means of submitting transaction histories compared to traditional banks. However, the onus is on the applicant to clearly articulate the context and purpose of each transaction. Meticulously prepared documents can expedite court approvals without the need for corrections, highlighting the importance of thorough documentation in the bankruptcy process.