overdrawn acct.

What is the name of your state? NY


Hi- I am filing for chapter 7 bankruptcy and I happen to have an overdrawn checking account in the amount of $300.00. Can I include this on the bankrupcy?

[Ladynred]

YES.

The upside is that you'll get that debt discharged.

The downside is that most banks are on a reporting system to share information with other banks -- so you probably won't be able to find a bank willing to give you an account for quite some time, unless the bank you're ditching the debt on is not on the reporting system OR the new bank isn't on the reporting system.

If the debt is small, you might be better off to clear it and keep your good standing with the reporting system.

[justvisiting]

I know of someone this happened to and the upshot is that for something this small you are better off working out a payment arrangement. Otherwise they can block you from opening up another bank account or even (from what I hear) from cashing checks at some places.

Another thing to think about is that many employers now have mandatory direct deposit for payroll, so you have to have a bank account.

Best to clear this up!