ChexSystems

• ChexSystems is a national database used by many banks. The system tracks your history of bank account usage, including the number of overdrafts and whether any bank has ever closed one of your accounts due to irresponsible usage. ChexSystems is most frequently employed by banks to decide if they will open a new banking account for you. Most traditional banks will not provide you with an account if you have a ChexSystems file, though some credit unions might be more lenient.
  
  

Accurate Reporting

• Once you file bankruptcy on an overdraft account, the bank will probably report the account to ChexSystems, if it hasn't done so already. ChexSystems is not required to remove an account from its database, even if you file bankruptcy on it. It can keep the record for five years. However, under the Fair Debt Reporting Act, ChexSystems must update your file to show a $0 balance and note that the account was included in bankruptcy. Some banks might issue you an account if the previous accounts were discharged via bankruptcy.
  
  

Dispute

• You should start by requesting a copy of your file from ChexSystems. It must provide a copy for you, free of charge. Review the information contained within it and submit a dispute, if necessary. Do this by making a copy of your report and marking any incorrect information. Provide supporting documentation, like your bankruptcy petition and notice of discharge. ChexSystems should send you a corrected file, or the reasons why it hasn't made corrections, within 30 days. Approach the bank of your choice to apply for a new account after the ChexSystems file is updated.
  
  

Other Options

• One option to avoid the hassle of ChexSystems is to open a new bank account with another banking institution before filing your bankruptcy petition, if you know you will be including your current overdraft checking account. If that account is already being reported to ChexSystems, this won't be a viable option. If you can't obtain a regular bank account after bankruptcy, consider a prepaid debit card account that includes a debit card and a bill-pay option. These accounts don't have checks, and there is usually a fee for the service. For example, there might be a monthly fee, plus fees for ATM withdrawals or purchase transactions. You can typically load money onto these types of accounts through direct deposit or a local merchant partner.