checking account overdraft

[mike2006]

hi,
i heard someone can't file bk if they have done cash advanced in the past 60 days? how about checking account overdraft?


thanks

chong

[HHM]

From a general matter, it's not a good idea to file BK on an overdraft (will get to why in a minute). However, whether it's a cash advance would depend on the circumstances and the amount. The presumption period charges (meaning transactions that are presumed fraudulent and cannot be discharged) are $600 within 90 days for credit (which probably would be what the overdraft woudl fall into), and $750 within 70 days for cash advances. Most overdrafts don't usually hit those amounts, so it's a moot point.

Unless you have another checking account already open that you can use, filing BK on an overdraft charge can make it very difficult, if not impossible to get another checking account. Just something to keep in mind.

[FilingOnMyOwn]

A regular bank is not likely to raise a fuss over it, as an overdraft is usually under $1,000. But a credit union might. Either way, its not enough of an amount that you should worry about waiting to file.

I owed my credit union about $2000 when I filed, which was my overdraft limit / line of credit, and on top of that my checking went 400-500$ negative in the last couple of months after the overdraft limit went maxed.

I now have a brand new credit union and they're much better than my old one.