Bankruptcy Bliss

Depending on your overall credit picture, there are some ways to avoid filing for bankruptcy. Look at your options and choose the option that best serves your needs. Whether it be going through a non profit counselor or negotiating on your own, don’t put yourself at the mercy of the creditors. Speak up and ask for the payments you can afford. Be sure if you select to transfer your balance to a credit card with lower interest rates, the rates are not just introductory that will go up after a specific amount of time. Good luck.

Effects of Holding Bank Account and Assets after Bankruptcy

After the bankruptcy order, you may open a new bank or building society account, but you should let them know that you’re bankrupt it is up to the bank or building society to decide whether they will let you
operate a bank account, and they may impose conditions and limits. You must use common courtesy if given use of a new account. Overdrawing the account or bouncing a check would be in poor taste.

Many banks belong to service called ChexSystems. This companyprovides information on checking accounts to its members assisting them ismaking business decisions. If a member banks reported you as having an account that your account was closed for cause (ie: overdrawn multiple times resulting in losses), it will make it more difficult for you to open a new bank account. It is estimated that approximately 80% of all banks use ChexSystems to some degree. Information will remain on your record for five years.

Banks vary in regards to service after bankruptcy. You may findit difficult to open a new account. On the other hand, you may be ableto open a basic account or use your existing account after the bank has
contacted the official receiver.

After you’ve opened a new account there is no need to tell your official receiver or trustee unless you are asked for that information. The official receiver or trustee can claim the surplus amounts, via an
income payments order (IPO), or an income payment agreement (IPA), to pay your credits. Your trustee may apply to the court for an IPO which requires you to make contributions toward the bankruptcy debt from your income. However, one will not be made if it would leave you without enough income to meet reasonable domestic needs. As long as you comply with the agreement agreed upon with the trustee interference in your new account is unlikely.

One interesting solution to opening checking accounts after bankruptcy is to fund an IRA (many banks open for as little as $50). After a few weeks, you can try to open a checking account “as a customer of the bank.” This significantly increases your chances of being approved.

Another possible alternative is PayPal. You can open an account with a saving account. With PayPal, you can get a debit card to make everyday purchases easier and you have the ability to make payments through
e-mail accounts.

Life after bankruptcy will be difficult. It’s important to keep your accounts as up to date as possible or it could limit your ability to open new accounts for a few years after your file bankruptcy.