Commercial Bank and Checking Accounts

Is it better to open a new checking account before or after filing for bankruptcy?

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2005-08-10 05:14:41
2005-08-10 05:14:41

You may find it difficult to open a checking about after filing bankruptcy, so I suggest opening the account before you file.

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Well first of all a checking account is much better than a savings account and that is how it is better



A savings account may pay higher interest rate than a checking account. Also, you don't have bounced checks, and NSF fees, normally.



That is close to being correct, but not quite. A better phrasing would be, do not leave a large balance in your checking account.


The benefits of a bearing checking account is that if there are errors of overdraft you can dispute them better but overdraft protects the person from paying more in the long run.


Banks will offer checking account deals to lure in new customers. The deals can be anything from better than normal interest rates, bonus amounts in your account or bonus add-ons to your account.


The purpose of a checking account statement, or any type of account statement for that matter, is to keep track of your account and make sure that no fraudulent activity is happening without your knowledge. Better to be safe than sorry!


This depends entirely on what it is that you want the account for. If you're trying to gain interest on your money, probably a savings account is better, but by how much depends on the bank and the rates they are giving you. If you mainly want an easy way to store and spend money, a checking account is probably the way to go.


There are several benefits from opening and maintaining a business checking account rather than using your personal checking account. When you use a business checking account you are segregating your business funds from your personal funds, thus creating better organization for your business. Also, having the business checking account will help at tax time because all your business transactions will be within the business checking account and there will be no need to sort through your personal transactions. Finally, the business checking account will allow you to use a taxpayer identification number (TIN) so the funds can legally be owned by your business, instead of using your social security number on the checking account. For a small business, opening a business checking account allows you to get more interests. In addition, transactions are processed faster compared to a personal account.


If you get the loan to your account then they can take payment from you whenever they want so it is better not to do a direct deposit.


Savings accounts usually have higher interest earning rates as the money is more stable than a checking account whose balance fluctuates with income and expenses.


In general, Federal tax lien are not able to be discharged through bankruptcy. You didn't mention what state you are in, but whether or not state taxes would be exempt would depend on applicable law. You should consult a bankruptcy attorney for exact answers to this question.The short-term answer is yes - filing bankruptcy will stop a garnishment and IRS bank levy from continuing. However, if the taxes are not going to be discharged in the bankruptcy then this only a short-term solution.I would recommend checking with a tax firm who specialize in debt resolution. There is probably a better way to fix this than filing bankruptcy, preferably a way that will not affect your credit rating any further.


Yes. However, consult a local lawyer and they would be able to address your specific issue better.


Whether selecting a checking account online or through a local bank, you will want to know what to look for to ensure you are getting the best account for your personal needs. Checking account offers can be found easily, providing you with the option of comparing the benefits of each account before committing to one bank.What to Look ForWhen choosing among checking account offers, you will first want to check out the fees associated with the account. Most banks offer free checking, but some can limit the free period to just a few months. Totally free checking can even include free checks, allowing you to save at least a few dollars annually on the cost of a checking account. You will also want to opt for an insured account that covers both theft or accidental overdrafts up to a specific amount.Along with personal insurance on your checking account, you will want to choose a bank that is FDIC insured. You can check with the Better Business Bureau to find out if the bank you are receiving checking account offers from has had any problems with customers before signing up. This is one of the simplest ways to ensure you are working with a safe, reliable banking institution.The Fine PrintSometimes, checking account offers don't disclose fees in the offer. For example, you may find that you will be charged when you use an ATM from another bank only if you read through the fine print of your contract with the bank. Make sure that you know whether or not fees will be incurred with ATM withdrawals before choosing the bank that is right for you. Some online banks will cover ATM fees, allowing you the convenience of using any ATM without paying two or three dollars.Competitive interest rates are also ideal when comparing checking account offers, although you may need to have a minimum balance over the period to collect interest on the account. With the right checking account offers, you can more easily find the bank that fits your needs without overcharging for their services.


The rule for refinancing after bankruptcy is that you should wait 10 years after filing bankruptcy even chapter 13 so that the bankruptcy is off of your credit and you can get a better chance of getting the refinance. You could try before it's removed but you will have difficulties.


Yes. You'll probably have to pay a higher interest rate and may have certain restrictions applied, but not necessarily. Many lenders/banks wuld see you as a better risk now that you are presumedly "debt free." So while it is more difficult to obtain a Merchant Account with a bankruptcy on your credit it is still possible. I was able to get a merchant Account through Merchant Wharehouse (www.merchantwharehouse.com) with less than perfect credit as they are "in house" and are more leniant with approvals than most banks.


A savings account should be a vital part of everyones financial planning. It is good to have separate savings and checking accounts to better prepare for your future.



If you are surrendering your house anyways, it is usually better for your credit score if you do it through bankruptcy. If your house is foreclosed on before you file bankruptcy, then your credit score is hit by both the foreclosure and the bankruptcy. If you let your house go back through bankruptcy, instead, then your credit score is only hit by a bankruptcy.


form_title=Credit Union form_header=How can joining a credit union benefit you? Better rates and fewer fees are just a few of the many reasons as to why. Have you used a credit union before?*= () Yes () No Are you looking to open a checking or savings account?*= () Checking () Savings Do you have any outstanding accounts with another bank?*= () Yes () No


There are several reputable sites on the internet that can help you get information about bankruptcy. Before you enter into an agreement with any online service check their references and their listing with the Better Business Bureau.


It is always best to keep your personal and business finances separate, and two checking accounts can help in this process. It is helpful if you are ever audited, and businesses often get better rates on financial products. It is highly recommended that you open a business checking account. It is important to keep your business accounts and personal accounts separate, especially when tax season rolls around. Sometimes businesses get better rates.


Since a savings account acquires interest it can be a good intensive to put away money that is better spent on large purchases. A savings account can also create a healthy habit of saving money for a rainy day.



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