Question Good Idea or Not to open a different checking account?

[freefall]

Yesterday, we opened a new checking account and we are considering moving my wifes monthly retirement pay to be deposited in that account and then using our old account to pay bills, etc.

Is this a good idea? It's just that filing BK is probably in our future and we have a lot of hands in our original account (you know, online payments, automatic payments, etc.).

I read the horror stories in here about creditors just going in and taking people's money out of their bank. It just seemed like we should start a virgin account. I don't know.

What do you think?

[justbroke]

It's a good idea. I did the same. I opened accounts at two different banks and began moving my payroll things. Not to soon though, as I filed and they (the Bank) took a huge chunk of money under their "right of setoff"!

[fireworks]

Open a new account NOW. I had most of my CC bills set up on automatic draft out of my checking account. I canceled all of the automatic drafts after consulting with a BK lawyer and making the decision, but both BOA and AMEX hit my account again (BOA did it twice). I did go to the bank and have those payments reversed but it took weeks to get everything squared away. Anyone who has your bank account information is able to pull from your account any time they want to - you can go reverse it later, but that's a pain in the butt. Just change accounts and then they can't do it.

I'm definitely not the only one here who's had that problem. There was a thread just yesterday that AMEX had cleaned out someone's account leaving her with a negative balance of nearly $5K. Don't let them do that to you.

[prgreg]

As the other responders have suggested, opening a new checking account (with an institution you will NOT be filing on) is one of the best moves you can make. Before my bankruptcy, I opened two new checking accounts, just in case one of the banks reviewed my credit later, and decided to close the account. Neither did, so I did eventually close one of the accts.

The bank I used prior to BK cancelled my checking account as soon as I filed, probably because I included a line of credit with them in my Chap 7. However, they did not offset (steal) the remaining balance, and actually sent me a redemption check (balance was just over the $100 required minimum.)

I would also suggest you lower the balance in your existing account to the minimum, or close it, and NEVER, EVER, under any circumstances give a creditor electronic access to your new account. In fact, were I filing again, I would use money orders instead of checks when making any payments to a creditor, so they don't even know your account number. Some creditors are ruthless, and you need to stay a step ahead of them.

Remember, the way to tell if a debt collector is lying to you, is if their mouth is moving. They will say and do almost anything to get a dollar out of you.

[Gerry]

Definitely open a virgin account at another bank.

Also, if you can afford it, buy a fireproof & waterproof safe like this: http://www.samsclub.com/shopping/nav...=5&item=326445

Start collecting cash, pre-paid credit cards, traveler's checks, money orders, etc. Yeah, I kinow, it seems impossible sometimes, but why deposit that birthday check from Aunt Emma where it can be tracked when you can just cash it and squirrel the money away for later? KWIM?

[jojo]

I have a question if I may. I have already filed and have a checking account. I do not owe any money to that bank (cu). I have already had my 341 meeting. I want to close that account and reopen a new one - just to feel safer. Can I do that at this point? Will the credit union question me? or give me any problems with this?

[prgreg]

I have a question if I may. I have already filed and have a checking account. I do not owe any money to that bank (cu). I have already had my 341 meeting. I want to close that account and reopen a new one - just to feel safer. Can I do that at this point? Will the credit union question me? or give me any problems with this?

A new account at the same credit union, or at a new financial institution?

If at the same credit union, just talk to the member services, and tell them your concern. You could always tell them you believe someone got ahold of your checking acct number, and you are worried about unauthorized transactions (which is essentially accurate). It used to be they could block any electronic withdrawls from an account upon request, but with the electronic check conversion systems many places use now, I don't know if it's possible.

If at another bank, I would have opened another prior to my filing, but not all banks will deny you just because of a BK on record. However, some banks do discriminate.

[Justpoor]

Cashing a check and getting a money order.

If I lower my current account to the $100 minimum does anyone know where I can cash my paycheck and get a cheap money order? I was suprised my own bank wanted $7 for a money order! I think Walmart has a limit to how much of a check they will cash.

[jojo]

A new account at the same credit union, or at a new financial institution?

If at the same credit union, just talk to the member services, and tell them your concern. You could always tell them you believe someone got ahold of your checking acct number, and you are worried about unauthorized transactions (which is essentially accurate). It used to be they could block any electronic withdrawls from an account upon request, but with the electronic check conversion systems many places use now, I don't know if it's possible.

If at another bank, I would have opened another prior to my filing, but not all banks will deny you just because of a BK on record. However, some banks do discriminate.

Same credit union. My big concern is that I signed up for dish network and I've heard horror stories of them taking huge funds out of your account if you cancel with them.
I just want a fresh start all the way around.

[freefall]

thanks for the info everyone. I'm glad I opened a new account.

[prgreg]

If I lower my current account to the $100 minimum does anyone know where I can cash my paycheck and get a cheap money order? I was suprised my own bank wanted $7 for a money order! I think Walmart has a limit to how much of a check they will cash.

The preferred route would be to open a checking acct at another bank or credit union. However, as you know, Wal-Mart cashes checks. If your employers bank is in your city, they will cash the check.

For money orders, fees can go from 39 cents to $10. A consistent source is the Post Office, and they charge $1.10 to $1.50. Some grocery stores charge less, but if a money order gets lost, it's a big hassle and can take 6 weeks to get a refund.

Again, opening an account with a credit union is a good idea for check cashing, and I only recommend using money orders for a short time; no creditor would raid a NEW checking acct after you file, unless you give them an okay.