Can negative amts in checking accts(bank) be discharged?

[Scream2Death]

this is the story

i've been keeping a checking account opened linked via debit card but never ever going above 100 bucks on my acct per month(i need to pay monthly car insurance of 90 dollars)

well, after car insurance took my payment yesterday, i had like 10 bucks left - but today BAM

1)100 dollars LEGAL ORDER FEE, and $11,774 PENDING!

I don't have the funds, yet can they charge my checking account?

can it be DISCHARGED?

please i need help! thanks!

[mamatyson74]

who is taking this from your checking account?

[Scream2Death]

honestly i have no idea! i'm guessing one of my credit card(i owe close to 12k in one credit card)

[mamatyson74]

The reason we had to file bankruptcy was because we had a 15k garnishment on our checking account. Once we filed the money they had taken was put back in our account. We werent promised we would get that back but thank goodness we did. It released our account from garnishment as soon as we filed. If you call the bank they can give you the information from the company that has a hold on your account. We tried working out something with them but they had control of our account so they werent interested in working anything out. What is so bad is we had no prior contact with this company and BAM they were there!!

[epiphany]

can it be DISCHARGED?

Yes, I am about 50 dollars negative due to unauthorized charges which caused bounce fees on one account. I am including it in my BK on my lawyer's advice.

ep

[Scream2Death]

thanks everyone so mucH!

[WhatMoney]

While the debt you owe can be discharged in bankruptcty, and the legal fee of $100 can also be discharged, just like discharging any overdrawn bank account, remember that the bank will report this to Chexsystems, and you will have difficulty ever getting another checking account anywhere.

Your bank will also close your present account if you discharge their $100 fee, once you file for BK. Case law even favors the banks if all the funds in your account were exempt. The banks can take any SSA deposits to pay for the banks legal fees, even when seizing the exempt funds was illegal by Federal law. It's not fair - but when it comes to the law, money always wins.

Since you knew you had several judgements against you, it was only a matter of time before one of then levied your checking account. It is always a risk to keep any checking account in your name, even if you only keep $1 in it. The bank wants their fee income no matter what the circumstances.

[Scream2Death]

While the debt you owe can be discharged in bankruptcty, and the legal fee of $100 can also be discharged, just like discharging any overdrawn bank account, remember that the bank will report this to Chexsystems, and you will have difficulty ever getting another checking account anywhere.

Your bank will also close your present account if you discharge their $100 fee, once you file for BK. Case law even favors the banks if all the funds in your account were exempt. The banks can take any SSA deposits to pay for the banks legal fees, even when seizing the exempt funds was illegal by Federal law. It's not fair - but when it comes to the law, money always wins.

Since you knew you had several judgements against you, it was only a matter of time before one of then levied your checking account. It is always a risk to keep any checking account in your name, even if you only keep $1 in it. The bank wants their fee income no matter what the circumstances.

thanks so much! is SSA - social security assistance?

are saving accts safe? thanks!

[danaf]

so what if you discharge for ex. BAC checking account, but before bk opened up a new account at a new bank with no cc's or loans attached to it. BAC reports you to chexsystems. Will the new account close your account?

[WhatMoney]

thanks so much! is SSA - social security assistance?

are saving accts safe? thanks!

SSA = Social Security Administration, which controls all social security benefits, SSI, SSD, and SS retirement benefits.

No, savings accounts and any account in your name is not safe. They can even seize your safe deposit box if they want to pay the $175 drilling fee to open it with a sheriff deputy and bank official as witnesses. So don't hide any valuables in a safe deposit box.

so what if you discharge for ex. BAC checking account, but before bk opened up a new account at a new bank with no cc's or loans attached to it. BAC reports you to chexsystems. Will the new account close your account?

Your new account should be safe, since the bank only checks when you open it, which would be before you get black-listed in Chexsystems. Be careful not to request any overdraft protection that requires a line of credit with the new account, since that will show up as a hard pull on your credit reports - and you might be refused based on your poor credit.

[epiphany]

so what if you discharge for ex. BAC checking account, but before bk opened up a new account at a new bank with no cc's or loans attached to it. BAC reports you to chexsystems. Will the new account close your account?

Not that I know of. They have no reason to check with chexsystems after the initial opening of the account if you remain in good standing.

It is always best to RUN to another institution you have ties to and open a new checking account when you anticipate that stuff is going to hit the fan with your current one.

ep

[epiphany]

While the debt you owe can be discharged in bankruptcty, and the legal fee of $100 can also be discharged, just like discharging any overdrawn bank account, remember that the bank will report this to Chexsystems, and you will have difficulty ever getting another checking account anywhere.

Your bank will also close your present account if you discharge their $100 fee, once you file for BK. Case law even favors the banks if all the funds in your account were exempt. The banks can take any SSA deposits to pay for the banks legal fees, even when seizing the exempt funds was illegal by Federal law. It's not fair - but when it comes to the law, money always wins.

Since you knew you had several judgements against you, it was only a matter of time before one of then levied your checking account. It is always a risk to keep any checking account in your name, even if you only keep $1 in it. The bank wants their fee income no matter what the circumstances.

All correct, but wouldn't the OP's account be reported to Chexsystems anyway with a huge lien against it? Just a wonderin'.

ep

[WhatMoney]

All correct, but wouldn't the OP's account be reported to Chexsystems anyway with a huge lien against it? Just a wonderin'.

I'm not sure, but I don't think so. The bank only reports actions that affect the bank, like NSF checks that are not paid and other bank fraud, to chexsystems. The legal action of a third party through a court levy is not a money problem for the bank, in fact they make money when a levy is issued through their legal fees.

At least in my state, the levy only takes what is in the account at the time of the levy. Any outstanding debt not satisfied by the levy is not paid. The creditor has to try another levy and hope they hit the account when there are funds there. BUT, the law varies from state to state, and how the wording of the writ of garnishment is written. Some levies can be continuing levies (particularly IRS levies), meaning any funds in the account can be seized when the levy is in effect. Others are one-shot deals for the debt collector.

The banks could be liable for reporting a wrongful or illegal levy to chexsystems, should the levy be challenged and reversed in court by the judge. I've never heard of account freezes showing up in chexsystems.

[epiphany]

Thanks WhatMoney!

ep