Bankruptcy can help get a bank account

Bankruptcy can help get a bank account and it helps you get back in to the regular credit and financial system.

One way filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy helps with this is by discharging any debts from overdrafts or bounced checks.

There is a company called Chexsystems, Inc. which works like a credit report for bank accounts.

Many banks and credit unions will not open new accounts for people with even a single negative Chexsystems entry.

Chexsystems, unlike traditional credit reports, only contains negative information.

Chexsystems measures things like:

• Overdrafts
• Bounced checks
• Unpaid balances
• Reports of fraudulent activity with checking and savings accounts

However, a Chexsystems report does not care if you have not had an overdraft for 30 years.

If you have none for 30 years, and then have five in one week, it may cause your bank to close your account without warning.

HOW DOES BANKRUPTCY HELP?

Without Chapter 7 bankruptcy or Chapter 13 bankruptcy, banks will often continue to deny bank accounts for up to three years after overdrafts or other reports.

While you are waiting for the bankruptcy to be finalized you can still:

• Get prepaid debit cards
• Keep using old bank accounts

But filing a bankruptcy is often the fastest way to get back into the normal financial system.

WHY IS BANKRUPTCY SO EFFECTIVE?

Bankruptcy is so effective because it discharges:

• Overdrafts or negative balances
• Bank credit card balances

This tends to make a person’s credit report look better, and so make banks more likely to work with them going forward.

You can also use your bankruptcy discharge to dispute any entries that you have in Chexsystems.

WHAT TO DO NEXT

If you’re anxious that you might not get a new bank account, then filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota, could help.

Speak to us now at 612.824.4357 and we’ll give you all the help and advice you need.

Alternatively, fill out our free Bankruptcy Evaluation Form to see if filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Minnesota is right for you.

We’re looking forward to helping you.

Photo Credit: © John Takai