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Question By
Rosieale86

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Is it safe to have a bank account when you're in debt and have poor credit?
I have so much old credit card debt that I haven't paid from when I was 18 (I'm 27 now) that I'm afraid of opening a bank account. I'm afraid they will take my money. Does not having a bank account hurt or help me? Are my fears valid?

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The answer is... it depends

Helpful to 2 out of 2 people

I'd suggest doing a quick search on the Internet for the Statute of Limitations for the state you live in. If the debt is past the statute of limitations, collectors can still attempt to collect but you generally don't face the potential of having them go to court. Depending on state law, a general rule of thumb is the statute of limitations starts clock starts ticking based on the date of last activity on the account. 

However, the above does not neccessarily apply if the creditors have judgements against you. If you have judgements in a court of law, then you are still obligated to pay the judgement. If you have student loans, you still have to pay them and they never go away.

In reality, the only way a debt collector is going to get access to your bank account is 1) if you give them access, 2) if the courts give them access or 3) if it is a government garnishment. So, under most circumstances, opening a bank account should not be much of a hassle and is a much better place to store your money as opposed to a stored value card or other un-banked methods of keeping your cash.

Reply by
Rosieale86

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Thank you! And yes, apparently, I have two judgements against me, but they haven't done anything. One is set to expite 2016 and the other 2018. 

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