checking reserve acct - unsecured?

[sleeplessinohio]

Hi,

We have a checking account with our local bank and a checking reserve line of credit in case of overdraft. I have always considered this to be like a credit card, though there is no actual card associated with the account. It's just used if we overdraft the account, and there is a $5 fee each time we do, in addition the interest that is charged.

Anyone know if this balance is dischargable?

Thanks.

Sleepless in Ohio

[keepmine]

Yes, it's unsecured debt and may be discharged.
I'd suggest you find a new bank before you file.

[erinmi]

Definitely find a new bank, especially if it is a credit union. I knew credit unions could be "tricky" when it comes to filing, so we moved our money to another bank we had a rarely used checking account (we used it often enough to keep it open).

We included our overdraft line of credit in our bankruptcy. Sure enough, our checking privileges were removed.

In fact, they are one of the very few places consistently reporting us negatively to the credit reporting agencies.

[Stilltheone]

Yes, we added ours into our bankruptcy. We also changed bank accounts.

Good luck~

[brkasajke]

I was seaching for this exact thread, geez how I love this place!
I have the same sort of account. at my bank. When we filed, I wanted to try and keep it because I only owed a little bit on it and our attorney said not to. Why do you need to change banks? I don't think I want to know the answer, but tell me anyway... I asked our attorney that exact question and he told me NOT to worry about it. The bank can't just go in and take the money out of your account, he was wrong about this too wasn't he..

[keepmine]

You need a new bank because, the bank you include in the bk will close your account.

[JRScott]

If you plan to include such an account and by law you have to list all debts then you need to open new accounts. If you fail to do so they most likely will freeze your accounts and seize all monies in them to meet your obligation to them.

[CindyLou]

I would NOT keep ANY money in any account with ANY bank on which you are filing BK on any acct. period. Just play it safe and open a new acct and you'll be fine....the line of credit is dischargeable just like any credit card and in fact is listed on your credit report like a credit report with a credit limit and minimum payment, etc....