chexsystem and bankruptcy

[fhcaptain]

What is the name of your state?OH

I the last year I suddenly lost my job. I had a checking account at the time with numerous automatic payments scheduled. I made attempts at contacting the service providers to stop the automatic withdrawals, but in most cases they stated it would take 30 - 60 days. Which unfortunately turned out to be true. With no funds to issue a bunch of stop payments, my bank account very quickly went into overdraft status. With rapidly mounting fees and penalties, the account well exceeded $3000. The account was closed by the bank. Still without income for a period of time, I was forced to file for chapter 7 bankruptcy. I lost everything, including my home. The bank was listed as one of the creditors as obviously, I had no way of paying them off at the time. The case was accepted by the court with a discharge of debtor being granted. I have found a job now, at a significantly lower salary, but the employer requires direct deposit of payroll. I went to a local bank and attempted to open an account but I had been reported by my previous bank to ChexSystems and was denied an account. According to what I was told by the banker, the only way for me to be able to open a checking account was to pay the debt to the 1st bank. Yet that debt has been legally discharged. And I am in no position at this point to come up with that kind of money.

Has the banking industry found a way to circumvent the federal bankruptcy laws? I have to repay a debt a federal judge says I no longer am responsible for? Is that not still a collection attempt? It is like they are saying...a federal judge may say you do not owe us, but we will make sure you will never get a bank account anywhere again until you do pay us.

Thanks

[Veronica1228]

Originally Posted by fhcaptain

What is the name of your state?OH

I the last year I suddenly lost my job. I had a checking account at the time with numerous automatic payments scheduled. I made attempts at contacting the service providers to stop the automatic withdrawals, but in most cases they stated it would take 30 - 60 days. Which unfortunately turned out to be true. With no funds to issue a bunch of stop payments, my bank account very quickly went into overdraft status. With rapidly mounting fees and penalties, the account well exceeded $3000. The account was closed by the bank. Still without income for a period of time, I was forced to file for chapter 7 bankruptcy. I lost everything, including my home. The bank was listed as one of the creditors as obviously, I had no way of paying them off at the time. The case was accepted by the court with a discharge of debtor being granted. I have found a job now, at a significantly lower salary, but the employer requires direct deposit of payroll. I went to a local bank and attempted to open an account but I had been reported by my previous bank to ChexSystems and was denied an account. According to what I was told by the banker, the only way for me to be able to open a checking account was to pay the debt to the 1st bank. Yet that debt has been legally discharged. And I am in no position at this point to come up with that kind of money.

Has the banking industry found a way to circumvent the federal bankruptcy laws? I have to repay a debt a federal judge says I no longer am responsible for? Is that not still a collection attempt? It is like they are saying...a federal judge may say you do not owe us, but we will make sure you will never get a bank account anywhere again until you do pay us.

Thanks

You should probably contact ChexSystems to make sure that they do not show that you owe anything. However, having the debt discharged does not remove you from Chex. Once you are reported you will remain on Chex for 5 years, whether you owe money or not.

I'm not at work, so I don't have their number right now. If you need it let me know and I will get it for you tomorrow.

[Veronica1228]

I found the number in one of my old posts.

800-428-9623

Good luck!