Stupid Question

[danaf]

If I changed to paper checks temporarily - and kept the balance in my checking account low, can I still cash my paychecks at the same bank where I have my checking account? If not, where could I cash my paychecks? My company uses a bank that is no where in my area, so I don't have that choice.

[MomIcantFindmy]

You can use a check cashing place. Depending on the amount, Walmart (who I lothe) and other retailers cash checks for a fee.

[FreshLikeADaisy]

Danaf, it's not a stupid question!

Have you thought about, for just the few weeks preceeding your filing, depositing your check in your normal acct as you usually do, but then buying money orders to pay your bills and getting the rest in cash? That way there's still no big balance when you file, and you're not stuck waiting for checks to clear. If your intent is to keep a low balance on the day you file, this will probably be easier (and cheaper!) than cashing the check elsewhere. If you're already doing paper checks and putting them in the mail, money orders are one extra step you can take for just the month or so preceeding your filing to keep your balance low; after you file of course you can go back to "normal" banking, whatever that is for you.

Ah well, just a thought. I wish you the best!!!

[Cali]

I never thought about that, thanks for the tip.

Danaf, it's not a stupid question!

Have you thought about, for just the few weeks preceeding your filing, depositing your check in your normal acct as you usually do, but then buying money orders to pay your bills and getting the rest in cash? That way there's still no big balance when you file, and you're not stuck waiting for checks to clear. If your intent is to keep a low balance on the day you file, this will probably be easier (and cheaper!) than cashing the check elsewhere. If you're already doing paper checks and putting them in the mail, money orders are one extra step you can take for just the month or so preceeding your filing to keep your balance low; after you file of course you can go back to "normal" banking, whatever that is for you.

Ah well, just a thought. I wish you the best!!!

[halomom]

Danaf,

I ran into a similar situation when I filed alst November. I had been a member of a credit union for 12 years and beside checking and savings accounts had a credit card that ended up in BK and a car loan that I reaffirmed. I didn't take the advice of the forum to run, not walk when you can have cross collaterilization issues with a credit union, and didn't open accounts in another bank. The lawyer told me to stop paying on the credit card which I did. I had a time of low cash flow and had about $400 to my name until I got paid in a month. The credit union called looking for payment and I told them I was ready to file BK and I wouldn't be paying. They said, "hmmm, well you have $400 in your account, that's enough to get current." I told them no, that was all the money I had and needed it for groceries, gas, etc. and then we hung up. A little voice in my head told me to check my acount and sure enough he had taken out $300. I jumped in my car, flew to the credit union and threw myself at the mercy of credit union officer and begged for help. She was able to get most of the money reinstated to my account and I went straight to a bank to open another account so that wouldn't happen again.

However, I then discovered that banks where you don't have a long relationship have much, much different check hold times than my old credit union. So for the last six months I take all my checks to the credit union where I have a $5 balance and a long history, get them cashed, then drive over to the new bank to make cash deposits so it will be posted that day instead of two days later. I then pay all my bills through that account. The credit union has never asked me to make a deposit. They just keep cashing things for me.