Discharging NSF from bank

[desperation]

I screwed up with a bank account and have about $1100 in overdraft charges. Most of them for small amounts $5.00 sandwich, $10.00 gas, etc. With a $32.00 charge per occurance, and then on top of that $300 charge for extension of NSF. Most of the $1100 is about $700 worth of bank charges for NSF the balance I believe is for what I originally owed the merchant.

I filed for chapter 7 today, and discussed this with attorney, and she advised that while I can discharge the NSF fees in chapter 7 I could still be brought up for criminal charges for the NSF's. Now I did not knowingly go out and swipe my debit card for purchases I couldn't pay for. I honestly thought I had the money in the bank, but it was right around Christmas, and I fell behind in balancing my checkbook.

She advised it wouldnt make a difference, because of the way the law is written, and I should have known what I had available. I can't argue that at all. Just bad money management on my part.

Anyone else been thru this? Should I reaffirm the NSF fees in my BK filing to avoid being prosecuted?

Thanks as always for the advice!

[SinkingFast]

NSF's rules/Laws vary from area to area. Sometimes County to County.

We can't really advise you on what to do.

BK attnys know generally about all Law, but specialize in the practice of BK. Attnys are like Doctors. They all have their areas of expertise.

You might try calling your local Court House and learn what the Law is for passing a bad check, or NSF Debit. Or, discuss this matter with a Criminal Law attny in your area.

[desperation]

Thanks SinkingFast - I will do a little research. I'm in Georgia. If I find any new information I'll post back.

[HHM]

The laws vary from state to state, but your attorney may be being a bit over cautious...

Generally speaking, overdraft accounts at banks are considered "credit". Essentially the bank is extending you a line of credit to cover the short fall in your checking account, and therefore you are NOT subject to criminal prosecution. The debt can be discharged in BK and there is no need to reaffirm.

However, if you pass a check to a merchant (i.e. Sears, J.C. Penny, grocery store) and the check is not honored by the bank because you have NSF and is therefore returned to the merchant, then you might be subject to criminal prosecution (by the merchant) for passing a bad check.

In summary...if the NSF is only with your Bank, you probably don't have anything to worry about regarding criminal prosecution...but you will be entered into chexsystem and you will be red-flagged if you try to open a new bank account. If your NSF issue is with a merchant, then criminal prosecution is a possibility. However, a criminal NSF is generally a misdemeanor and all you need to do is pay off the bad check.

[Spartan]

Yep.. Got my overdraft credit line with Wells Fargo discharged in the BK.

I have only one bounced check to a supermarket. And it was for $5.00. The reason it bounced was because the damn bank, which I had no problem with and owed no money to, closed my account without notifying me. I included the $5.00 in the bk. I haven't heard anything back.

Wells Fargo did report me to Chex. But I got a new checking account with another bank, after I got discharged. They didn't care about a Chex report that is 4 years old, just as long as I didn't owe them any money.

[desperation]

Huge relief then. I seldom wrote checks....at best 3 utility companys, and when they threatened with disconnect, I had to come up with security deposit and pay the bill in full by cash or money order.

I have friends who have been thru this and when the merchant is trying to collect they usually file their claims with chexsystem, and then chex sends out a claim/statement asking for payment.

I haven't received anything like this. So hopefully this can be resolved in Chap 7?

[Spartan]

Chex keeps your report on file for 5 years. I got a few more months to get out of jail. It used to be that they would delete it when you get a discharge. Now they don't. Screw them. All the same to me. Got a new checking account.