How to Get a Bank Account After Bankruptcy
If you're like most debtors, you probably filed bankruptcy with a few bounced checks and/or an overdrafted account. If that's the case, you may run into some problems opening a bank account after bankruptcy if you don't take certain important steps as listed below.
- The first thing you need to know is that Chex Systems, Telecheck and SCAN are all check reporting companies governed by the Fair Credit Reporting Act. Just like credit reporting agencies they must report information accurately and must follow their dispute systems.
- If a bank has turned you down after bankruptcy, order a free report from one of the check reporting agencies. You are entitled to one report per year. Once you receive the report take your time to carefully review it for inaccuracies. If a bounced check or closed account is reported inaccurately, challenge it. If your overdrawn account or bounced check was discharged in bankruptcy or settled the check reporting agency must note this.
- The check reporting company has 30 days to respond to your complaint. If they fail to respond, you may be able to get the bad check or closed debt totally removed. If they do respond and accurately note your account as discharged in bankruptcy, you should be able to open a bank account within 60 days after the correction. It's important to note that negative information cannot remain on the check reports for more than five years. If you have old information on your check reports ask the reporting agency to remove it.