Getting a new bank account

[inpain66]

I know I will need to open a new checking account before I file since my current account is with a credit union where I have debts.

I did open a new account at another credit union but I am concerned they will freeze this one when I file. I have no debts with this other credit union. Do all your bank accounts freeze when you file or just the ones you have debts with.

I ask this because my work will only do direct deposits. If I do not have access to my accounts once I file I will become homeless and starve.

So am I ok with the second account with a CU I have no debts with?

[freshstartfl]

I filed Chapter 7 on 12/22, and switched from one credit union where I do have debt to another credit union where I do not owe anything -- same as what you're contemplating. I moved both my savings and my checking. Nothing happened! I was not frozen, suspended, or anything.

[bkchap7filer]

Why do so many people on here use CU instead of banks? I just have never used a CU so maybe don't understand the attraction.......

[blankslate]

I don't use checking accounts at all anymore after getting screwed by my bank numerous times. Banks are for profit and they will get it any way they can. I had two paychecks just disappear when they were deposited because the bank found a way to run things through that caused an avalanche of fees. I've heard "if you would balance your account" well I did, and then the bank decided to "retro date" a fee for a date that would send me into overdraft. It's one thing if you make a mistake and have to pay out a few dollars. It's another to have them set it up for you to lose several hundred.

That said, I use a re loadable debit card. You can have your paychecks directly deposited as if it were a regular checking account. I have used this for over a year and the only fee I have ever paid is the monthly fee of $4.95 and ATM fees like all other banks do. There was one time when I bought gas that my balance went negative and I wasn't charged anything for that. Also if you have cash that you would like to put on your card, you can reload it at any coinstar machine or buy a money pak. I love this card! (Sounds like an advertisement doesn't it?) Here is the website https://www.greendotonline.com/Contents/Products.aspx

And the reason we prefer CU's is because they are not for profit. You will get small fees if you mess up, but they're not looking for ways to collect them like the big banks are. As soon as my bk is over and I'm transferred to the new city I'm going to open a CU savings account. No more checking though, it's more trouble than it's worth.

[liz417]

If your paycheck is on a debit card, aren't you afraid it could get stolen or lost?

[blankslate]

It's the same as a checking account debit card. It has your name on it and your signature on the back. They have to ask for ID as they would any other debit card. It's not like a gift card that can be used by anyone. If it gets lost or stolen, you call and report it right away.

[blankslate]

This is their official policy:

What if someone steals my Card or uses it without my permission?

You should treat your Card as if it were cash. Guard the account number the same way you would cash or any credit card. Do not share your Card number with anyone. If you lose your Card or believe it to be stolen, you must immediately contact our lost or stolen Card hotline at 1-877-434-3578. We will cancel your old Card, transfer the remaining balance to a new Card and then mail it out to you at the address on file. Fee applies.

[liz417]

It's the same as a checking account debit card. It has your name on it and your signature on the back. They have to ask for ID as they would any other debit card. It's not like a gift card that can be used by anyone. If it gets lost or stolen, you call and report it right away.

Oh, sounds good then It's a great alternative to banks, they are all becoming owned by the same institution(s) anyway

[blankslate]

Exactly! I've been very happy with this debit card. Also if you end up with someone charging your account monthly and you don't want that anymore, you can easily close that card and open a new one with a new account number.