Bank Accounts with Burned Banks after Bankruptcy

[Anonymous]

My bankruptcy has cleared and I have a question about opening checking accounts. I read somewhere online that if you had both a checking account and a credit card with the same bank and then filed bankruptcy, that the bank could seize the money in your bank account to cover the credit card you had with them.

Now that my bankruptcy has cleared, is it safe to open an account with banks I burned? So if I open a checking account with chase, can they take my money for past cards I had with them before filing, despite the fact that my bankruptcy has cleared?

[jacetx]

Hi pnewelljr.  When you said your bankruptcy has cleared, do you mean discharged? If that's the case your debt has been eliminated by order of a federal judge. The bank no longer has the right to collect on that money because of bankruptcy protection.

[Anonymous]

Thanks so much for the response! (and yes I meant discharged) Good to know!

[Billybob_TX]

Try a local CU. Explain what happened if they ask. There are some good ones out there.

[mrsjr]

They can't collect the money since it's been discharged, but they may blacklist you from even getting a checking account!

[Taoron]

I had 3 credit cards with Capital One, about $1500 total of credit between the three.  I also had a Capital One 360 account (ING Direct when i opened it.)  I thought I was going to get my bank account closed because they closed my credit cards when I filed for BK.  However, my Checking account is still open.   I have had nothing but positives with Capital One 360.   It is an online bank, though.  I opened an account with a CU and have been happy with that too.  They granted me credit, too.  So that and my Credit One card have been building up my credit since August.  I had to slightly modify the "700 in 2 years after BK" plan on this forum, but I plan to follow the basics of it.  IE, I will find a place to apply to in place of Capital One since I don't think they'd grant me credit since they were IIB.

So far, my credit score has gone up ~100-150 points since March due to the debt being discharged. 

Not sure if you want to give Capital One 360 a try. 

[TRC_WA]

I have my checking/savings accounts with BECU as well as my car loan and largest CC.

In bold print on the paperwork it says "BECU can seize any funds on deposit in the event of any loan default."  I opened my accounts with them last year shortly after discharge and they've been very helpful in getting me re-established in the credit world.

My point is, if you are in a similar situation to make sure you pull all the money out of your accounts PRIOR to filing... LOL

[DaveInAZ]

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@TRC_WA wrote:

I have my checking/savings accounts with BECU as well as my car loan and largest CC.

In bold print on the paperwork it says "BECU can seize any funds on deposit in the event of any loan default."  I opened my accounts with them last year shortly after discharge and they've been very helpful in getting me re-established in the credit world.

My point is, if you are in a similar situation to make sure you pull all the money out of your accounts PRIOR to filing... LOL

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I'd recommend you also close your bank account on record with creditors not only prior to filing, but prior to going late with them - like the account you provided them to debit your payment. My attorney told me to stop paying anything but also he would wait 90 days to file as I had been using CC checks to make min payments on other CCs. CC checks = cash advance, and a creditor/trustee can dispute the discharge of any cash advance made 90 days prior to filing. Chase CC was the worst, they used an outsourced call center in India, and kept calling asking authorization to charge my bank account for payment. I told them "No, that account is closed", but what do you expect when you outsource to a 3rd world country? Several apparently claimed I told them "Sure, go right ahead!" as I had at least 6 notices of attempts to charge that closed account. If I hadn't closed it, it would have been drained of any $$$ and incurred hundreds in OD charges.