If a ledger goes bankrupt, what happens to the funds in my wallet?
A ledger going bankrupt
The good news is that most people don't need to know an awful lot about the ins and outs of accounting to be able to use their wallets effectively. After all, you don't need to know how your computer works to send a personal email, do you? With that in mind, let's take a look at the basics of accounting so you'll be able to understand exactly what happens when a ledger goes bankrupt.
Funds in your wallet
It's a complicated question that doesn't always have the same answer, but in general, the funds in your wallet would go into the assets of the bank. If the bank goes bankrupt and can't cover those funds, then you're at risk of losing them together. In a worst-case scenario, you could end up with nothing.
Overdraft protection
In my opinion, most people don't realize how risky it is to use a debit card without protections like overdraft protection. It's pretty common for banks to charge people a $35 fee for using their card after their account balance has been overdrawn. What most people don't know is that these overdraft fees are optional charges set by banks and they aren't required by law.
Setting up an overdraft protection
Some research on Bankrate: Guiding you through life's financial journey found that only 10 out of 456 banks did not charge overdraft fees! That's crazy! So if you're going to use your debit card – you should make sure that you have overdraft protection set up so that you don't have to worry about paying those fees.
If you have any questions, you can get a free consultation with the Best Attorneys in Utah.
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
