Not only can you open a checking or savings account after Chapter 7 or Chapter 13 bankruptcy, but it is the best thing you can do to start rebuilding your credit. The many myths that circulate about bankruptcy make some believe that they cannot open a post-bankruptcy bank account but that is simply untrue. There are, however, some secrets to picking the right bank and choosing the right account for your situation.
- Choose a federally insured bank. There should be signs inside the bank and possibly on their website that read “FDIC.” That stands for Federal Deposit Insurance Corporation and it means that the federal government has insured your account for up to $250,000. It is often wise to start with a credit union or small bank when you first emerge from bankruptcy so it is especially important to check for insurance.
- Choose your account wisely. You will be better off getting an account with low or no minimum balances to make sure you don’t run into some unexpected fees. Also, make sure you get overdraft protection to avoid hefty fees and bounced checks. Over drawing your account certainly will not help you on your way to success and avoiding it is imperative.
- Be wary of debit cards. Some banks will charge you a fee to use your debit card. Make sure you are clear on the terms of the card before using it and, if there is a fee, try to always run it as credit. Having a debit card is also another reason to have overdraft protection. Debit cards often seem like the safer option because the idea behind them is that you only spend what you have—but you can over draw your account just as easily with a debit card as you can by simply writing checks.
If you have chosen the best St. Louis Missouri or Fairview Heights Illinois bankruptcy attorney, they will be more than willing to tell you these tips and more to help you get started on your life after bankruptcy. Still asking yourself “Should I file bankruptcy?” Consider reading through free material like articles, blogs, and publications from experienced Missouri and Illinois bankruptcy lawyers to find out how you can erase credit card debt, get protection from foreclosure, and get on your way to a fresh start. If you have chosen the right bankruptcy attorney for your situation, he or she will be more than willing to offer you the best information for getting back on your feet.
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can request a free copy by visiting his website at http://www.CastleLaw.net .
Article Source: ArticleSpan
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