How To Remove Negative Bank Account

[judgediatl]

OHIO

I have a bank account that is currently several hundred dollars negative. It was caused by a series of circumstances involving some other people using my card and mismanaging of funds on our part. Anyway, we take responsibly for things getting in this condition.

The account will basically be negative permanently until they close it at the bank. I've researched it and I'm aware it will probably be sold to a debt collector who will try and collect on it and it will also be turned into the CheckSystem which will probably prevent me from getting bank accounts opened elsewhere in the future.

I am going to file for bankruptcy this summer in order to get my financial situation under control. However, I don't want this bank account and CheckSystem blacklist hanging over my head forever and making it hard for me to work with banks.

My question is, will the bankruptcy completely clear me of the CheckSystem blacklist and what can I expect from them? My prime priority after the bankruptcy would be to make sure this isn't on my record anymore.

 

[swalsh411]

From what I can tell you will need to send them documents after everything is finalized and they will remove the records.

You seem too cavalier about the whole bk thing. If you need to file why not do it now? And why is this your "prime priority"?

And don't expect banks to welcome you with open arms when this is over either.

 

[Proserpina]

From what I can tell you will need to send them documents after everything is finalized and they will remove the records.

You seem too cavalier about the whole bk thing. If you need to file why not do it now? And why is this your "prime priority"?

And don't expect banks to welcome you with open arms when this is over either.

Absolutely.

OP needs to understand too, that the bankruptcy is going to hit his credit HARD.

 

[bdancer]

I'm not so sure that filing bankruptcy will remove the ChexSystem report. The debt may be discharged but it would not remove a negative from your credit report -- the item would just be noted as discharged in bankruptcy. I suspect the same will be true of ChexSystem, especially since this is a report of poor bank account management which ain't cleared by bankruptcy.

Reports to ChexSystem run for 5 years.

 

[swalsh411]

Add to that, banks know that most people who declare bk probably had overdrawn accounts. (not always, but often).

 

[Jeran]

I hate to say this, but yes, you probably will have to pay off the old overdrawn checking account before you will be able to get a new checking account.

They don't care about bad credit (such as charged off credit cards, repossessed cars, etc.) or whether you filed bankruptcy, but they do care about whether you have a checking account with a negative balance.

Look at me. I had HORRIBLE credit for 7 years, but I had no problem getting a new checking account.

Why? Because I never had an overdrawn checking account.