Serving time in jail or prison will not excuse you from your financial obligations. However, often weeks, months or even years can pass from the time you are arrested to the time your case is closed. So what happens to your funds during this time?
If a judge determines you’re not a flight risk and you’re in a position financially to make bail, then you should have time to sort out your finances. If you are denied or unable to make bail, your credit and finances may suffer unless you make the appropriate arrangements.
What Happens to Your Money While in Prison?
Generally, nothing happens to your bank account if you are sent to prison; however there are some exceptions. If the government believes that you financially benefitted from your criminal activity, such as selling drugs or insider trading, they may freeze or even take your assets.
All banks are different, but most banks will put a hold on your account restricting any access to your funds if there is no banking activity for a certain amount of time. By updating your banking address to your jail or prison address and making small deposits periodically, you can avoid bank holds due to account dormancy.