I went through a hard time recently and let my checking account go negative and into collections. It has been about a month or so since the account was closed and sent to be handled by a special department at the bank. I haven't paid anything but did talk to them a couple weeks ago and explained I might have money to pay a little bit soon.

Since then I decided to file for bankruptcy, which I'm planning to do this coming Tueday.

Surprisingly I just went to cash a $40 bday check from my grandma at Wamu and when they asked if I wanted to open an account. I tried expecting it not to work, but it did. I was up front about my last bank having the account closed and forwarded to the collection department. Also I mentioned my plans for bankruptcy. The response I got was that if Chexsystems is notified soon, Wamu would likely notify me that they are going to close my newly opened account.

Any advice on what I should do? Should I pay the old bank a tiny bit to possibly keep them from reporting until the BK is further? Will the bankruptcy even help me with Chexsystems?

One thing she told me that came as a surprise was that with bad info reported to Chexsystems, I wouldn't be able to open a checking account even with a really big deposit.

In this situation again you must remember that Chexsystems is a credit reporting agency. The same as bankruptcy will not erase a collection on Equifax, Experian, or Transunion, it will not remove your name from Chexsystems.

Most people believe that they will be able to open a checking account and get a fresh start after bankruptcy. This is not true. Bankruptcy can help with bounced checks but it doesn’t solve all the problems, And it will not get you out of Chexsystems.

Recently more and more people have been requesting removal from chexsystems after a bankruptcy is discharged and to our surprise, they have been removing many records by sending in a request for removal along with a copy of the discharge papers etc.

As far as WAMU, they are a well known bank for having opened accounts and closing them at a later time due to chexsystems. Definitely do not trust this bank.


Depending on where you live, there many be options of banks that either do not use chexsystems at all or others that make exceptions and will not close your account.

Thanks for the info.

Do you think I should try and make small periodic payments to my old bank to possibly keep them from reporting to Chexsystems? I'm not sure if this would help at all. Maybe they are going to report it regardless but just haven't gotten around to it yet.

I would try to talk to them and do whatever they asked to keep from being reported to ChexSystems. I speak from experience. I had a Harris Bank account that I overdrew for like $600. I paid it IN FULL within three weeks (maybe two) of the OD notice. I actually went to the bank IN PERSON and paid it and asked that they keep my account open - NO GO. For several months, I had to cash my paychecks @ a 'Currency Exchange' and paid like 3% each time - a pain in the a** not to mention expensive.

Finally, I was able to open an account at the now defunct NETBANK - which was later purchased by ING (I think). When it was purchased, I was not allowed to open a new account at the new bank. That sucked.

Now, a few years later, I have been able to open an account @ BOA.

Again, if you can keep them from reporting you, DO IT! The alternatives sucks.


...just one person's opinion.

PMR

Damn, that does suck. Couldn't you have cashed your paychecks at your employers bank? I did that once, and they may have charged like $5, but probably still a lot better than 3%.

My account was already closed, so I'm not sure if regardless of my upcoming actions I will be reported or not. I'll call and talk to them though on Monday. Hopefully things work out. I wont be able to pay it in full right away, but maybe just paying something will keep them from reporting possibly.

WAMU reports regardless unless something has changed since the take over by Chase Bank

It did suck. I worked from home for a company on the east coast (I live in the Midwest) so I couldn't always cancel them at their bank. It was nice when I'd go out for sales meetings as I could cash them at their bank then. If I could swing it, sometimes I'd take two or three at a time.

Ahh, that makes sense if the bank wasn't near where you live...

WaMu is the new bank I signed up at, so they wouldn't be reporting anything. I'm concerned if Union Bank (my old bank) will report to Chexsystems and cause the new WaMu account to close.

I guess I will manage with whatever happens, but if possible it would be nice to keep an account at a major bank. Right now my plan is to call the department at Union Bank handling my account on Monday and see if they will tell me what they do with Chexsystems.