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Cash reserve before filing chapter 7 New york

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    Cash reserve before filing chapter 7 New york

    Hello all been following quite awhile Incase chapter 7 may happen and unfortunately it will.
    Long story short is that I have racked up
    100k on credit cards during a almost 3 year ugly custody battle and will have to
    stop payments this month , I just don’t have it any longer. I’m expecting the divorce to
    settle within about 6 months and need to wait till afterwards to file , I really have no choice.
    My specific question is this. I have a cash reserve at a local bank about 3k in the negative.
    I’ve read that they report to diffrent credit tracking companies and could lock me out of getting a checking account for five years. When I’m able to discharge chapter 7 in at least 6 months down the road can I get a checking account again? I do have a checking with another local bank that in a positive. Will this be effected at all?
    Thanks guys in advance in this f-cked up
    time

    #2
    Your overdrawn bank account is not a "cash reserve"--it's a debt. An unsecured debt, to be specific. And just like any other unsecured debt, you'll include it in your bankruptcy, and the debt will be discharged. Upon discharge, the bank must update the account with any credit bureau it reported to--including ChexSystems, EWS, or Telecheck--that the balance owed is $0. You will then be able to open a new account.

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      #3
      Road rash depending how long ago your account has been overdrawn and possibly not showing up on checksystems or on your credit, go ahead and open you new account preferably with a local Credit Union, but the choice is yours. A lot of credit unions pull your credit to only verify your identity and also look at checksystems for unpaid closures. There are some credit unions that doesn’t pull credit and only use checksystems. They have better options for rebuilding your credit and giving you 2nd chances vs the big shot banks. Coming from a person who works at a credit union and just recently filed BR.

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        #4
        If this debt shows on your credit report at the time of filing it will be included, discharged regardless. If it doesn’t show on your credit report, make sure you keep track of the company name that you owe and the amount of the debt. You will be asked to include all debts and amounts that you are including in BR.

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