bank account

[indyonline]

Would a negative balance in a checking account that has been sent to collections be covered in bankruptcy?

[lrprn]

Would a negative balance in a checking account that has been sent to collections be covered in bankruptcy?

Indyonline, I removed the live website link in your signature. Our forum rules state that these are allowed only if pre-approved by our administrator, Lazar, or after you've made 100 quality posts here.

To answer your question, yes - a negative checking account balance can be included as a debt and discharged in bankruptcy. However to do so can place your name on the banned ChexSystems list and can make it very difficult to open another checking account for a long time.

However, after their bankruptcy cases are closed, several members here have gotten their name removed from the "bad" ChexSystems list by providing a copy of their bankruptcy discharge papers to Chex.

To learn about ChexSystems and how banks and other financial institutions use their consumer information, see http://en.wikipedia.org/wiki/ChexSystems