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How do the Banks Know? Help!


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Once you file BK how does your local bank where you have an account find out? If I don't have any loans with them, why would they pull a credit report?

I basically just have a checking account>.

some banks do a personal pull of your cr b4 opening an an account. Is this right, i don't think so but when I opened up my checking account with bank of america the next day there was a pull by them.

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I would think it depends on if you owe the bank money or not. If you don't have any loans, then you are probably fine. If you have outstanding loans, well then, I would find a new bank quick in case they get wind of it. They probably have a clause in your loan documents to get your money if the foresee problems or something like that. When I met with my attorney before filing my BK several years ago, that is the advise he gave to us.

As far as I am aware, most banks review your Checksystem record for outstanding checks and possibly others.

Others probably have more definitive answers though.

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If you have outstanding loans, well then, I would find a new bank quick in case they get wind of it. They probably have a clause in your loan documents to get your money if the foresee problems or something like that.

This isn't entirely correct. While banks do have a right o fsetoff, but they can't just take money if they THINK you might have problem.

If you don't owe your bank any money, then you have very little to worry about.

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I have several accts with a LARGE bank. In various divisions they have my first mtg, my HELOC, a business credit card and 2 personal credit cards. Filed CH13 on the credit cards and paid mtg arrears thru bk. Have 2 checking accts with the same bank, had them YEARS before filing bk and they have not taken any action or said a word about it.Even before we filed and the mtg was in arrears they never tried to attach the checking acct. I know that the right of "set off " exists but how much do financial institutions use it I don't know, I wonder if it is more trouble than it is worth for them or what....

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I believe all banks pull your CR now after 911.

The PATRIOT Act requires they get ID for anyone opening an account with large sums of money. If you are a small-fry <$20,000 the law does not require it. What the banks are looking for is if you have walked away from overdrafted accounts at other banks.

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