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Denials: How to get Bad Bank Account Reporting Removed

Our Indianapolis Bankruptcy clients are frequently denied opening up bank accounts due to prior overdraft and other insufficient fund situations.  One “bad report” on a bank account reporting service such as “Chexsystems” can make it almost impossible to open a new bank account.   It can feel as if you have been “blacklisted” from banking.  From the perspective of an Indianapolis bankruptcy law office, let’s discuss how bad bank account reporting can be removed.


Removing Bad Bank Account Reporting Without Bankruptcy

Removing bad bank account reporting can be more difficult without filing for bankruptcy.  The primary way of removing bad bank account reporting is to initiate a dispute with Chexsystems or wherever the bad reporting is taking place.  If you can start a dispute that is not fought by the bank creditor, you may be able to remove the information that is blocking you from starting a new bank account.

However, if the banking institution challenges your dispute, you may need to attempt to settle with the bank.  If you owed the bank $1500 in overdraft amounts, you may need to pay this amount with an agreement that they will remove or amend their reporting from Chexsystems.  Just as with regular credit reporting, you may be able to improve your “banking” reporting by settling or paying off your various debts.

Removing Bad Bank Account Reporting by Filing Bankruptcy

Filing for bankruptcy can be a powerful tool for repairing credit.  After you file for bankruptcy, your ability to be eligible for bank accounts can be restored immediately.   For the most part, this is because all previous credit reporting should be restored after you file for bankruptcy.  You will have a “clean slate” on your credit, even though there will be an entry on your credit detailing the time and place that you filed for bankruptcy.

Removing Bad Bank Account Reporting that Continued After You Filed for Bankruptcy

If a creditor continues to report bad bank account information after you filed for bankruptcy, the creditor should be contacted directly by you or your bankruptcy attorney.  If your bankruptcy attorney proves that the information is from before the bankruptcy, usually the bank will remove the information immediately.

~Indianapolis Bankruptcy Attorney John Bymaster

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