bank overdraft privelege

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Hi Iwas wondering about using my banks overdraft privelege before filing bankruptcy, Would this be considered a cash advance?

[justbroke]

I don't know what type of overdraft protection your bank offers. There are several types; first, overdraft using another demand deposit account (such as a savings account); second, overdraft using a credit card; or third, overdraft using a line of credit. If it's the second type, overdraft using a credit card, then that is a "cash advance" while using a line of credit is not a cash advance.

Having wrote that I need to mention that using credit with the expectation that you are going to file bankruptcy shortly thereafter or that you know you will never pay it back is not appropriate in most circumstances. If it's for the health, safety and general welfare of you or your immediate family I give some exception to taking on debt before filing.

If your credit product for overdraft (credit card or line of credit), the bank may decide to pursue this as nondischargeable. In any event, the creditor would need to file a complaint (adversary proceeding) to determine the dischargeability of the specific account (claim). (I think you've already read something about 11 USC 547 and what is "excepted" from discharge.)

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Thank You , The overdraft privelege I am talking about is with a debit card that allows me to overdraw my account up to 400 dollars for a 30 dollar fee,but must be repayed within 30 days, I am not overdrawn right now bot on occassian I have used this service, just wondering if this will affect my bankruptcy, I no longer use credit cards just my debit card

[justbroke]

The worse thing that it could do in your bankruptcy is that the creditor bank files a complaint asking the court to deem this specific account (claim) as non-dischargeable. That's an expensive route for the bank to take and I don't see a bank pursuing such complaint for $400. It would then be dischargeable like anything else.

That type of overdraft protection, with a charge, used to be called "early advance" which is a type of cash advance. Unless there is outright fraud, it is not likely a bank would pursue the small amount.

By no means does what I write above advocate or condone spending money that you know you are going to discharge (with "my" personal limited exception I described above).

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O.K. Thanks like I said currently I do not owe them, and do not intend to owe them again, Just want make sure before I file me having used this service will not be a problem, Like if I used it a couple of times in the last 60 days?

[justbroke]

I wouldn't worry about that amount over the last 60 days since you paid it back each time.

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O.K. Thank you