FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

This field is hidden when viewing the form

Source

How can we help you?

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Comments

This field is for validation purposes and should be left unchanged.

Select Trustee By Province

overdraft

My bank account is currently in overdraft… is this also wiped out through bankruptcy?

Posted from: British Columbia

Share this post:

X (Twitter) Facebook LinkedIn Email

One Response to “overdraft”

A licensed trustee said...

Yes, your overdraft is a debt that will be included in your bankruptcy or proposal. As a rule, we ask our clients to “switch banks” before they file to a new institution that they are not indebted to. The new account should not have an overdraft because if it does we need to notify the new bank of the bankruptcy and the overdraft will be cancelled.

A word of warning about switching banks: many banks will “hold” funds for new customers, often for as long as 5 days. You need to know your new bank’s policy so you can plan your payments accordingly. If funds are “held” and you write a cheque it will bounce and be charged a fee – be careful and you’ll be ok.