Line of credit overdraft account

[inhocknow]

Hello everybody, here is another question for you great folks!
I have a line of credit that acts as a overdraft account to my checking account. Does this account act as a cash advance or a purchase? I would like to know if this account falls under the 70 day wait rule or the 90 day wait rule? Thank you all for your wonderful help.

[MajorMike]

inhock,
why don't you just wait 90 days and you'll be safe for all of it.

[HHM]

You want to be leery about declaring BK on an overdraft account, as doing so can make it very difficult to get a new checking account. You are already going to blow your credit by filing BK, no reason to blow yourself out of chex-system as well.

[Keebler]

You want to be leery about declaring BK on an overdraft account, as doing so can make it very difficult to get a new checking account. You are already going to blow your credit by filing BK, no reason to blow yourself out of chex-system as well.

Please tell me more -- this is exactly the situation I'm in. I had a $1,000 advance a couple of months back. I'd like to pay it back, but I won't be able to pay everything I owe the Credit Union because of a credit card with them and an automobile loan.

Short of doing nothing, what's the best solution? A $1,000 repayment is too high to avoid the risk of a preferrential payment. Would it be best to pay it back and take a chance on getting caught? If the $1,000 payment is recalled from the Credit union, will they treat it the same as if I bankrupt the account?

[HHM]

If the deed is already done (if you already overdrew your account and won't be able to pay it back before filing). Go immediately to another bank and attempt to open a checking account and transfer you money to that account, as well as your direct deposit. Then file BK.

Note, there is a list floating around of banks that do not use chexsystems. But I don't have it on-hand. Most purely local banks (i.e. state banks) tend not to use chexsystems or are more lenient.

[familyof7]

You want to be leery about declaring BK on an overdraft account, as doing so can make it very difficult to get a new checking account. You are already going to blow your credit by filing BK, no reason to blow yourself out of chex-system as well.

When you send chex systems the proof of filing chapter 7 they erase you from their system. I know because I did so.

[demismom]

We had a Credit Card and an OD protection account on our checking account. Our attorney advised us to keep $1 in that account and go immediately and open another account in another bank BEFORE filing, which is what we did and we've had no problems. We did NOT request another OD Protection for the new account though.