Banks are always on the lookout for poor investments or clients that have a history of bad banking behavior. Banks need to protect themselves and one way to do this is by using a service called ChexSystems. This company can provide information on users that have bad credit history or have a record of bad transactions. The data on the customers are often found in ChexSystems for 5 years.
On occasion, some banks allow users to open accounts even with bad credit or after bankruptcy. But this is rare. It is often impossible to open a new account in a bank if you’re listed on ChexSystems. Banks may set tougher guidelines on active accounts, and tougher guidelines for applications..
If you’re lucky enough to find a bank that will accept you, it is often unnecessary to inform your official receiver or trustee unless asked to provide an explanation. The official receiver or trustee can claim the extra amount with an IPO (income payment order), or an IPA (Income Payment Agreement) to pay your credits.
The trustee can ask for an IPO from the court. After this, you will be required to pay off the debt using your salary. However, remember that a creditor is not permitted to collect an amount that would render you impoverished and incapable of supplying your basic needs. As long as you pay a certain amount, you’re safe.
If you only have a debit card with you, you may not need a checking account. You can open a paypal account and use your debit card to purchase online. You can also lookout for second chance accounts. Some banks are offering them.
When you’ve declared bankruptcy, there may still be a lot of opportunities for you. But we have to admit, it’s tough not being able to be financially stable. Once you get hold of a break and you have a chance to start anew, you must do all you can to keep your finances in order and your accounts up to date.