If we discharge overline of credit with our bank

[tools2teach]

We have a over draft line of credit of about $3000, if we discharge this BK will we be put on Chexsystems? If that is the case, then that will be the first thing we payoff before filing.

[BKParalegal]

If you pay that off, within 90 days of filing than it is a preferential payment, which in reality doesn't affect you, it just gives the TT the opportunity to go after those funds (which they never do). But in short, you would just be burning those funds if you paid it off. Go get a new checking account before you file, and then list that debt on your BK. If you are worried about Chexsystems, I am not sure about their inner workings, but in any case, just use your debit card...checks are so 1990's.

Good Luck

[StartingOver08]

Yes, but chexsystems is used to bar you from opening an account - not because of bad checks, but overdrafts - which can also be done by debit card. Once you are on the chexsystems databank you either have to find an institution that doesn't check it to open an account or wait out your five years. (Chexsystems neg data stays on for 5 yrs)

[BKParalegal]

Is your current account closed? If not then open the new account now, then as I mentioned before, there isn't an issue with Chexsystems