Often debtors filing for bankruptcy have bounced check obligations. Fortunately, bankruptcy discharges bounced check debts and other associated bank debts such as overdraft fees. The check reporting companies are obligated to accurately list the debtor's account as "$0" balance or "discharged in bankruptcy." But some debtors may still have trouble opening a bank account after their bankruptcy discharge due to inaccurate reporting by one or more check reporting companies such as Chex Systems, Telecheck and SCAN.
Here's what you can do:
- Order a free copy of your Chex Systems report (you can also choose Telecheck or SCAN). Under the Accurate Credit Transaction Act you have a right to a free copy of your consumer report once every 12 months.
- Review your report to make sure discharged debts are accurately listed as "$0" balance or discharged in bankruptcy. If these accounts are not reported accurately, file a dispute.
Once your Chex Systems report (and other credit reports) accurately reflect your bankruptcy discharge, you should be able to open a bank account with 60 days with no problem. If the credit reporting agencies or check reporting companies fail to comply with the law you may want to speak with an attorney.