What happens if I have funds in escrow and the escrow company goes bankrupt? Are funds frozen..for how long?

Asked by Walter Chang, San Jose, CA Sat Feb 21, 2009

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Bill Eckler, Agent, Venice, FL
Sat Feb 28, 2009
Walter,
We would recommend you refer your question to an attorney for their advice.

Good luck
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John Barry, Agent, Eagle Rock, VA
Fri Feb 27, 2009
Hi Walter,

Normally, during a bankruptcy proceeding, the assets of the entity declaring bankruptcy are frozen. However, it is my understanding that, as funds in an escrow account are held in trust, they are not subject to being frozen by the court and are therefore protected from creditors. If you are concerned about your funds which are currently held in escrow, I would check with a lawyer or CPA to be sure... Thanks, good luck!
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