Opening a Checking Account after Bankruptcy
As you rebuild your finances after a bankruptcy filing, one important step is establishing credit and relationships with banks. Opening a checking account after bankruptcy can serve as an important step toward reclaiming control of your financial life.
If you are still considering if bankruptcy is an option for you, you could benefit from speaking with an attorney familiar with the laws and the process. To ask your questions about post-bankruptcy life directly to a bankruptcy lawyer, please fill out this form and arrange a free, no-obligation consultation today.
What to Know about Banking after Bankruptcy
First of all, opening a checking account after bankruptcy can be an excellent step toward keeping yourself on track for rebuilding your finances; with the help of a checking and savings account, you can more easily pay bills on time and keep track of your money. Here’s some information on getting started.
- Face your past: If you had a checking account in the past and frequently bounced checks, overdrew your balance, incurred late fees or otherwise "abused" the privileges associated with your account, your financial institution may have reported you to ChexSystems, a company that documents troublesome behavior from banking clients. If you suspect you may have been reported, you can contact ChexSystems and about any debts you still owe.
- Research banks in your area: The next step in this important post-bankruptcy process is to learn about banks in your area. The best way to do this may be to go in and discuss various checking account options with a representative. In some cases, credit unions are more lenient about taking on those recovering from bankruptcy than larger banks.
- Choose a bank and choose a checking account: When you decide on a bank, be sure to ask about the various types of checking accounts it offers. The bank's representative can help determine which one will likely work best with your finances.
- Complete necessary paperwork: Fill out the necessary forms, which will require you to present identification and give your Social Security Number and other information. Make sure you understand the terms of the checking account, especially what fees are associated with it and whether it has a minimum balance requirement.
- Make a deposit: Most banks require a start-up deposit between $50 and $100.
- Order your checks: It's important to make sure you order checks so that when your bills come due, you can pay them on time.
- Learn how to track your finances: Whether you choose to track your checking account online or by hand, make sure you understand how to keep track of how much money you have. This may mean filling out a check registry, logging on to your account daily or following some hybrid system.
When Am I Ready to Open a Checking Account after Bankruptcy?
The bankruptcy recovery process is different for everyone. However, knowing what to expect is an important part of determining if bankruptcy is right for you.
If you're considering turning to bankruptcy protection to help you get out from under debt and restart your financial life, you can connect with a bankruptcy attorney today and learn more about how to expect throughout the process. Simply fill out the free case review form below to get started.