Overdraft

June 22nd, 2006 by Questions

I have $1500 overdraft protection on my account which I have lived in for many months. Can the overdraft be included in my bankruptcy? I am usually $1000-1500 in the hole at any given time.

Questions

One Response to “Overdraft”



June 22, 2006 at 11:00 am, A licensed trustee said:

Yes it can (and in fact, should be) – here’s the catch: if you know you are in financial difficulty you are obliged to stop using the overdraft. That doesn’t mean you have to pay it off, but you shouldn’t let it get any larger. It looks particularly “bad” if you max it out in the period immediately before you file for bankruptcy protection – it looks like you did it on purpose…

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