chapter 7 - will my bank close my acct with them?

[sofarindebt]

I have a $1500 line of credit on my checking account, which is gone right now, but I don't want to pay it back before bkcy because they will take it as a preferential payment. I have been with this bank since I was old enough to open a checking account, so over 10 yrs.

Do I:

-not list it on the schedules, claiming I forgot
-reaffirm the debt (hope they will keep my checking acct. for reaffirming)
-open a new bank acct now before bankruptcy in case they close it


Will I even get approved for a bank acct. right now with horrible credit?

Thanks!!!

[CATCHMEIFYOUCAN]

If you haven't filed Bk yet, open a new checking account, based on my experience, thats what I did!

I listed the "overdraft," on my list of creditors (mine was only $500), you'll have to keep that account open at the bank but dont use them.

Give you a "picture," of what I did:

I had a checking account with chevy chase with an overdraft account of $500. I stopped using the account altogether. They said I was not allowed to close the account because I still had a "line of credit/overdraft," with them. I told them "well I don't want to keep paying on the checking account I dont use, but I will keep paying on the overdraft (lie)" they changed my account to a "student checking account," so I wouldn't be charged monthly service fees.
When I filed bk, I listed them along with my other debts, now I'm awaiting discharge
I know, $500 is not alot and I did keep paying on it, but once I filed I STOPPED.

Hope this helps, catchmeifyoucan

[CATCHMEIFYOUCAN]

Additonal comment to SOFARINDEBT

chapter 7 - will my bank close my acct with them?
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I have a $1500 line of credit on my checking account I I had $500, which is gone right now mine was maxed too , but I don't want to pay it back before bkcy because they will take it as a preferential payment I kept paying back the minimum $20 a month - nothing was mentioned at my 341 meeting of any preferential payments. I have been with this bank since I was old enough to open a checking account, so over 10 yrs. me too, off and on for years
Do I:
-not list it on the schedules, claiming I forgot Did you already FILE? than you haven't forgotten, you need to list all debts (even overdrafts)-reaffirm the debt (hope they will keep my checking acct. for reaffirming) don't reaffirm the debt if you are filing ch7 just get it discharged along with the rest, i never understood why people reaffirm debts (unless its a car/house) your filing bk , your credit is screwed anyways, start over! most banks just "fire," you, you are prohibited from using THAT account or the bank altogether (for example, I no longer have access to my accounts or privileges with that bank)
-open a new bank acct now before bankruptcy in case they close it
Will I even get approved for a bank acct. right now with horrible credit?
I dunno, I was able to set up a no fee checking account with another bank (wachovia) I did this BEFORE i filed


GOOD LUCK, Catchmeifyoucan

[lrprn]

Sofarindebt, I left answers to your questions in red below:

I have a $1500 line of credit on my checking account, which is gone right now, but I don't want to pay it back before bkcy because they will take it as a preferential payment. I have been with this bank since I was old enough to open a checking account, so over 10 yrs.

Do I:

-not list it on the schedules, claiming I forgot
Very bad idea! You must list every debt on your schedules - you don't get to pick and choose And anyway, the bank will know about your bankruptcy because they will be notified due to the account itself being listed on your forms. By not mentioning the overdraft, you take the chance the bank will remove $1500 from your account in a lump sum to pay the overdraft when they find out you've filed.

-reaffirm the debt (hope they will keep my checking acct. for reaffirming)
The $1500 overdraft is dischargeable, so reaffirmation is the only way to ensure the bank will not take the $1500 from your account unannounced.

-open a new bank acct now before bankruptcy in case they close it
This is the best choice in these circumstances. Bankruptcy is a business decision, although our emotions often get tied up in it. You have an emotional connection to this bank, but it's really just a place to keep your money. I do understand how you feel, because we had been banking with our local bank for over 20 years and had over $3000 owed on an overdraft protection account. It was very difficult for us to list the debt and know that we were going to eventually discharge it through Ch 13. However, we had to do what was best for our family in the long run, and that was to open a new account and let the overdraft discharge. We still have our second mortgage with our old bank - they just raised our APR knowing we are in Ch 13, so I don't feel too bad. They are going to make up that $3K in one year from the extra interest. Like I said - cold, unemotional business decision. If the bank can do it, you need to do it too.

Will I even get approved for a bank acct. right now with horrible credit?
Sure - we even got a debit card from our new bank! You can either open the account before you file (you will have to list the new bank on your forms) or take the chance and open the new account within days of filing so you don't have to list them (but you'll be out of luck if you have any troubles opening the new account and getting autodeposits and bills paid out of it). One way you could have trouble is if you have a history of writing bad checks and are on the "banned" lists that banks check when opening new accounts. Hopefully that isn't the case for you. Thanks!!!

[anonymuse]

You lose your LOC. As long as you haven't bounced checks in the past, you shouldn't have trouble finding a new bank. Getting a debit card is easy; getting overdraft protection will not be.

Sometimes people wait until the day after they file their BK to open a new checking account so they don't have to include it in their BK, but don't have the BK on their record yet when they try to open it. I'm not sure if that's a good or bad thing, but I'm just stating something I've read on here often.

[niteflytes]

I had an overdraft at the bank I'd used for years and I opened a new account. Then I started the process to file BK. Before I filed I opened 2 new checking accounts at different banks (long story). The bank with the overdraft was included in my BK and they closed my account months ago, long before my filing date, due to the outstanding overdrafts.

So right now I have 3 checking accounts and I filed on 11/30. I'm getting rid of one of them because that particular bank is evil, IMHO. I'm keeping the other 2 for now. I'm considering using one of the checking accounts as a savings account and not carrying that debit card around with me as a way to force me to save more money.

I don't know if that helps you any or not...

niteflytes

[SinkingFast]

Sometimes people wait until the day after they file their BK to open a new checking account so they don't have to include it in their BK, but don't have the BK on their record yet when they try to open it. I'm not sure if that's a good or bad thing, but I'm just stating something I've read on here often.

People opening a new acct the day after filing typically are Ch 7 filers.

The day you file for Ch 7 BK sets the BK Estate. So if you go the very next day and open a new bank acct, the new bank acct is not part of the BK Estate. And as Anon said, your BK filing hasn't had time to become common public knowledge, so opening an acct the very next day is easier than waiting a week or so.

If your current acct LOC is consider over draft protection, your current bank may or may not report you BK'd on $1500 against them to Chex or some such other type Banking Reporting Agency. I looked on the Net a bit and did not find any direct evidence that this can happen.

At the Chex Systems website, https://www.consumerdebit.com/consum...s/en/index.htm Chex does discuss the types of information Banks give to them. Evidently, the information banks report goes right down to when you order checks, and how many are issued on what date. Unreal!!