I purposely overdraft my BoA bank account for $40,000. I did it so I can use the money to pay off all my credit cards debts. All I have left now is this big chunk of debt I owe to BoA. What will the bank do to me? I know I might go to jail for this, but If I were able of make a schedule payment plan of $500-1000 a month to them, I might get out of trouble?
2007-04-09 16:58:49 · 14 answers · asked by Steve 1 in Business & Finance ➔ Credit
BoA does not charge interest or any other fees for every day that you're overdrawn. They just have a one time overdraft fee of $35.
2007-04-09 17:16:14 · update #1
This is one of those questions that just makes you want to yell WHY??? WHY DID YOU DO THAT???
If your BoA account had overdraft protection, then you have essentially traded one kind of debt for another kind of debt. Check the terms on your overdraft protection -- but I suspect you won't like them. Then talk to the bank. Be polite, even obsequious.
If your BoA account didn't have overdraft protection, be proactive and go ahead and find a lawyer to talk to about it.
Almost certainly a bad move either way... but exactly how bad would be the next thing to find out.
2007-04-09 17:07:04 · answer #1 · answered by enoriverbend 6 · 0⤊ 0⤋
If you are serious then you are as others have said basically "Up a Creek Without a Paddle"
First if you had enough credit built of with BoA to allow you to overdraft by $40,000 you probably could have gotten a loan. Most overdrafts stop at a few hundred dollars. If it did not get stopped because of the OD, they also have a fraud department that if they see checks out of the normal for you they will hold it and not pay on it.
Also, don't kid yourself into thinking you will just be paying that $35. If by some chance it did go through and they figure out what you did you will be hit with more fees and interest than you could imagine. Then best thing that will happen is they will force you to pay it back, it won't be over 4 years, it would be within a very short time. The worst thing that will happen is that you will be spending at least some time at the Iron Bar Hotel.
Also, don't think Bankruptcy will help you either. If the Judge/Trustee sees this they will basically laugh in your face and turn it over to the local district attorney.
2007-04-09 20:04:38 · answer #2 · answered by OC1999 7 · 0⤊ 0⤋
How did you manage to overdraft that much? Banks usually stop honoring checks if you go more than a couple of hundred over, depending on what kind of customer you have been in the past. Not very likely they will accept small payments for an overdraft - more likely they will either make you take a loan if you have any collateral that you can use and a way of repaying or sue you and attach any collateral you may have. You will be very lucky if they don't file criminal charges against you too.
2007-04-09 17:10:41 · answer #3 · answered by Brian G 6 · 1⤊ 0⤋
First, you should consult a lawyer (who will do your first session for free). He can advice you on how to stay out of jail and advice on filing bankruptcy. I have no idea why you did that, though. The overdraft interest rate from the bank including fines and fees are probably higher than the credit card interests (which you could have rolled over to cards with promotional rates and paid off over time). Plus you do not make money by robbing Peter to pay Paul.
Look into companies that can help you with a payment plan, if you really think you can pay off all $40k
2007-04-09 17:08:35 · answer #4 · answered by Ivan 5 · 1⤊ 0⤋
BoA (or any bank for that matter) will charge you a fee for every day you are overdrawn. So it will be just as bad as having credit card debt. They will also stop payment on the money sent to the credit cards so your credit cards will also charge you a fee for having to return an unfunded payment to BoA. Of course, your entire credit rating will get worst. Oh, BoA might also cancel your account and others banks might not let you open an account with them. You will now be considered a high risk.
2007-04-09 17:07:29 · answer #5 · answered by AW 2 · 0⤊ 1⤋
That's alot of money. I'm not sure if they will treat it like a small overdraft such as 40 dollars or 400 dollars. In any case, I overdrew my account by nearly 700 dollars. They called and told me that I had 120 days to get my account out of a negative. If not, my account would be closed and reported to the 3 Bureaus(which would give me bad credit). I hope this helped. But you should call and discuss this with a BoA rep.
2007-04-09 17:09:44 · answer #6 · answered by lroc06 2 · 0⤊ 0⤋
you needed to get some advise before doing this. Call the bank and work out a plan--otherwise tell us what jail is like.
2007-04-09 17:03:06 · answer #7 · answered by RayM 4 · 0⤊ 1⤋
Up the creek without a paddle!
2007-04-09 17:06:46 · answer #8 · answered by oldster 5 · 2⤊ 0⤋
Go to the bank before they come for you...
2007-04-09 17:08:39 · answer #9 · answered by Grand pa 7 · 0⤊ 0⤋
u need to pay them off soon if not they will close your account and put u on checksysmest
2007-04-10 04:58:04 · answer #10 · answered by shorty21 5 · 0⤊ 0⤋