My Bank Account is Negative $1,000 — Fix it (2024)

Table of Contents
Do not use an overdrawn account Explore your checking account advance Consider closing your checking account Contact a bank representative Minimize fees with the right options How can I keep my account from going into an overdraft? How can this be avoided in the future? You can fix a negative bank account Respond to a debt lawsuit Why is my account overdrawn? How long can your bank account be overdrawn before they close it? How long can a bank sue you for an overdrawn account? Statute of Limitations Calculator The Satute of Limitations How to Answer a Summons for debt collection in all 50 states Guides on how to resolve debt with every debt collector Resolve your debt with your creditor Settle your medical debt Guides on arbitration Stop calls from debt collectors Federal debt collection laws can protect you Get debt relief in your state Debt collection laws in all 50 states Statute of limitations on debt state guides Check the status of your court case How to stop wage garnishment in your state Other wage garnishment resources How to settle a debt in your state How to settle with every debt collector Other debt settlement resources Personal loan and debt relief reviews How to repair and improve your credit score How to resolve student loan debt Civil law legal definitions Get answers to these FAQs on debt collection How-to debt guides Learn more with these additional debt resources FAQs

Dena Standley | February 02, 2024

My Bank Account is Negative $1,000 — Fix it (1)

Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

My Bank Account is Negative $1,000 — Fix it (2)

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Fact-checked by George Simons, JD/MBA

My Bank Account is Negative $1,000 — Fix it (3)

Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD/MBA. In his spare time, George likes to cook, because he likes to eat.

My Bank Account is Negative $1,000 — Fix it (4)

Summary: If your bank account is in the negative, you should avoid using an overdrawn account at all costs and focus on replenishing the balance. To fix a negative bank account, consider a checking account advance, closing your account, or contacting a bank representative to minimize fees and explore your options.

We've all been in that situation. You go over budget on a few items one month, and your checking account is overdrawn. Before you realize it, you are in the negative zone. A negative account has profound implications; your account may be temporarily suspended or closed, and ChexSystem may record a closure on your record, making it harder for you to open new bank accounts in the future.

In any case, you can make efforts to correct the issue and prevent it from happening again. It would be best if you acted immediately to avoid a downward spiral of overdrafts, bounced checks, and fines.

Here's everything you should know about how to fix a negative account below.

Do not use an overdrawn account

If your account has a negative balance, you should immediately stop using it. Because of the overdraft fee that your bank charges for each negative transaction, a negative account balance quickly snowballs into an enormous debt. Anyone who charges transactions from the account increases the debt because each transaction is double charged.

If your bank account has insufficient funds to afford a purchase, your debit card may be refused right away. However, your card may be accepted during the purchase, only charged later with fees that add to your debt. For example, if you went to a store and spent $3,000, but your account only had $2,000 in it when the retailer deposited the check in the bank, you would owe $1,000 on the check.

The retailer's bank can either pay him the full amount or let the check "bounce" to your bank and mark it with non-sufficient funds (NSF). If the first scenario occurs, you are liable for the $1,000 overdraft.

See Also
What Is a Negative Balance on Your Credit Card? - NerdWalletNo negative balances in savings accounts: RBIWhat Happens When Your Checking Account Goes Negative?Why is my available balance more or less than my current balance?

Explore your checking account advance

Consider a checking account advance if your bank offers one where the bank will lend you the money you need to balance your account at a high-interest rate. To qualify for a checking account advance, you'll probably need to make regular deposits into your account.

If your paycheck is directly deposited into your account every two weeks, your bank may offer you a checking account advance (and your account history shows this). Remember that these advances might come with excessive interest rates and fees, so tread caution when considering this option.

Consider closing your checking account

If you cannot pay your negative account balance, ‌try to freeze or close the account because most banks charge a negative account balance fee on a negative account. If you cannot make a deposit, these costs will make it even more challenging to settle your obligation.

Call or visit your local branch to find out what your alternatives are. Depending on your bank, you may ‌quickly close or freeze your account to prevent continued costs.

Contact a bank representative

Call a bank's customer care line; they may waive the first overdraft or returned check cost, especially if it's the first fee for a new account or any account in a new calendar year. This can help you pay off your debt faster.

If you owe too much or don't think you'll be able to resolve your overdrawn account, talk to your bank about creating a plan that will allow you to resolve the issue without being reported to ChexSystems. The bank may offer you a payment plan or terminate your account if you do not repay the money. In any case, you'll have to repay the money you owe.

Minimize fees with the right options

Americans pay an average of $7 in monthly banking fees. It is essential to understand the options available and ways you can minimize or avoid fees. Banks are required under Federal law to disclose any fees they charge in connection with a deposit account. Ask your bank for the account opening disclosure and fee schedule. All deposit-related fees that your bank can charge are listed in the documents.

Standard fees might include:

  • Monthly maintenance: These fees may be lower or waived in certain situations, such as when you have a direct deposit or maintain a minimum balance. Ask if other fees can be waived with direct deposit.
  • Automated teller machine (ATM) withdrawal: To avoid charges, use only the ATMs in your bank's network or those that allow you to use your ATM or debit card for free.
  • Overdraft fees vary by bank, but they may cost around $35 per transaction. Some banks may also charge continuous overdraft fees or daily overdraft fees.
  • Minimum balance fees: Check with your bank to see if low balance warnings are available, so you don't accidentally fall below the minimum balance required for overdrafts.
  • Non-Sufficient Fund (NSF) fees: If you write a check for more money than your bank account and don't have any overdraft protection, the check will bounce, and you will be charged an NSF fee. Keeping track of your account balance will assist you in avoiding overdraft fees.

For more on account disclosures, visit the FDIC Consumer News January 2021 Issue.

How can I keep my account from going into an overdraft?

Different banks and credit unions handle overdrafts differently, so it's good to review those facts before opening a checking account. This will also assist you in setting up your account to suit your lifestyle and spending habits.

If you own a business, be on the lookout for thebest online business banking options to avoid overdrafts in your business acounts.

How can this be avoided in the future?

You may employ a few simple methods and practices to maintain your checking account in the black moving ahead. Here are a few examples:

  • Sign up for low-balance text or email alerts.
  • Regularly check your bank account and analyze your monthly statements.
  • Compare the dates on which automated payments are deducted to the dates you are paid. If required, change the automated withdrawal dates.
  • Examine your budget to ensure that no spending categories are constantly beyond your financial means.
  • Invest in an emergency fund.
  • Consider whether you need overdraft protection and coverage. If they do, make sure your backup account has enough.

You can fix a negative bank account

An overdraft is inconvenient, but it happens. Knowing that you have choices can help you better manage your finances and prevent yourself from falling into more debt. It may be beneficial to create a simple budget if you deal with overdrafts more frequently than you'd like. Having a clear picture of what's coming in—and what's going out—can sometimes be enough to keep you ahead of the financial game.

Respond to a debt lawsuit

If you are being sued by your bank for a debt, you should respond immediately. The first step to winning a debt collection lawsuit is to respond with a written Answer. Follow these three steps to answer your debt lawsuit and win in court:

  1. Answer each claim listed in the Complaint: Instead of focusing on sharing your side of the story, your Answer should be simple and respond to the claims against you. You can admit, deny, or deny due to lack of knowledge. Most attorneys recommend that you deny as many claims as possible to strengthen your side of the case.
  2. Assert your affirmative defenses: These are any legal reasons that the party suing you should not win the case. As we mentioned, the statute of limitations can be a great affirmative defense to raise in your Answer. There are several other defenses that can help you strengthen your case and even get it dismissed.
  3. File the Answer in court, and send a copy to the party suing you: Make sure to file the Answer before the court deadline. This is anywhere from 14-35 days, depending on which state you live in. You should also serve the opposing attorney with a copy of the Answer. Send it via certified mail with a return receipt requested.

Learn more about these three steps here:

Why is my account overdrawn?

Your account is overdrawn because you spent more money than you have. This could happen for several reasons, including:

  • Overdraft fees: If your account is slightly overdrawn, banks may charge an overdraft fee, further increasing the negative balance.
  • Pending transactions: Sometimes, transactions that haven't been fully processed can result in an overdraft. For instance, a merchant might hold a certain amount on your debit card, affecting your available balance.
  • Automatic payments: Regularly scheduled payments, like utility bills or subscriptions, can cause an overdraft if they occur when your account balance is low.
  • Bank errors: Though rare, mistakes by the bank can also lead to an overdraft. It's important to regularly review your account statements for any errors.
  • Uncleared deposits: If you’ve recently deposited a check, there may be a delay in funds availability, leading to an overdraft if you spend against this amount before it clears.
  • Multiple transactions in a short time: Multiple transactions occurring in a short period can sometimes overlap before balances are updated, potentially leading to an overdraft.

To resolve this issue, review your recent account activity to identify the cause of the overdraft. If it's unclear or seems to be an error, contact your bank for clarification and assistance. Regular account monitoring and setting up alerts for low balances can help prevent future overdrafts.

How long can your bank account be overdrawn before they close it?

The Federal Deposit Insurance Corporation and The Code of Federal Regulations have incorporated a guideline that suggests charging off an overdrawn bank account in 60 days if there has been no deposit activity, while for federal credit unions, the suggested timeline is 45 days.

Once your account has been charged off, it may be passed on to a collection agency who will contact you to pay off the balance, plus fee, interest, and court costs if the case escalates to legal action.

Resolve a debt lawsuit after a charge-off.

How long can a bank sue you for an overdrawn account?

Each state has a unique statute of limitations that governs how long a bank can sue you for an overdrawn account, and you can check you state’s statute with this calculator:

Statute of Limitations Calculator

The Satute of Limitations

This calculator is for educational purposes only.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources


We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.

Ask a Question

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

My Bank Account is Negative $1,000 — Fix it (5)

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

My Bank Account is Negative $1,000 — Fix it (6)

Not sued yet?
Use our Debt Validation Letter.

Our Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

My Bank Account is Negative $1,000 — Fix it (2024)

FAQs

My Bank Account is Negative $1,000 — Fix it? ›

Summary: If your bank account is in the negative, you should avoid using an overdrawn account at all costs and focus on replenishing the balance. To fix a negative bank account, consider a checking account advance, closing your account, or contacting a bank representative to minimize fees and explore your options.

Read The Full Story ›
What happens if my bank account is negative 1000? ›

If you have a negative bank account, that means you've taken out more money than was available in the account. Letting an account go negative can be costly, because banks charge fees when this happens. And your bank could close your account if it stays negative for too long.

View Details ›
How do I fix my negative bank account? ›

How to Fix an Overdrawn Bank Account
  1. Make a transfer to cover the charges. ...
  2. Ask your bank for a refund. ...
  3. Stop using the account. ...
  4. Use these tips to avoid overdrafts. ...
  5. Track your expenses. ...
  6. Use low balance alerts. ...
  7. Reconsider overdraft protection. ...
  8. Choose the right bank account.

Know More ›
How to overdraft $1000 dollars? ›

Your bank might offer you an overdraft line of credit that you can draw against. Say you have a checking account and the bank grants you a $1,000 overdraft limit. That means you can spend all the money in your account, plus up to $1,000 more before the bank will block any further transactions.

Read More ›
How do I get rid of negative balance in my account? ›

In most cases, people quickly eliminate their negative bank balance by simply depositing the amount needed to get their account back in good standing. However, there are certain consequences that your bank may impose, especially if you consistently have a negative bank balance, such as: Overdraft fees.

Learn More ›
How long will a bank let you have a negative balance? ›

How long do banks give you to pay overdraft fees before closing your account? Usually 30 days. Banks don't like you to overdraft your account, that's why they charge high fees.

View Details ›
How long do you have to pay an overdraft back? ›

If a payment takes you into any arranged overdraft, you have until the end of the day to pay money into your account to avoid daily arranged overdraft interest for that day.

Learn More Now ›
How long do you have to fix an overdraft? ›

You will have until 11 PM ET (8 PM PT) on the next business day to make a deposit or transfer that brings your account balance to overdrawn by $50 or less at the end of that business day.

Find Out More ›
How do I get my account out of negative fast? ›

To bring your bank account balance to a positive number, you could try:
  1. Not making any additional purchases with your negative account.
  2. Balance your account so you know how much money you have.
  3. Put money back into your negative account as soon as possible.
  4. Speak with your bank about any possible mistakes or issues.

View Details ›
Can I still spend money if my account is negative? ›

Stop spending from the negative bank account

The first step to take when you realize your account is overdrawn is to stop spending money from the account. Continuing to use the account is likely to further exacerbate the negative balance, leading to even more fees and potentially more serious consequences.

Explore More ›

How to pay off $1,000 overdraft? ›

Taking out a credit card or a loan can be a sensible move if it means you'll be paying less in the long run. A 0% or low interest money transfer card can be a strategic way to clear your overdraft, but it's imperative to pay off the balance before the 0% period expires.

Find Out More ›
How to get out of 1500 overdraft? ›

You could either:
  1. Transfer the balance to a credit card with a lower interest rate. Do not spend anything else on your new card. ...
  2. Use an affordable loan with lower interest to pay off your overdraft. Then pay back the loan with a set monthly repayment.

Tell Me More ›
How long can my US bank account be negative? ›

You will be charged an Extended Overdraft Fee of $36.00 if the Available Balance remains negative for seven consecutive calendar days; you will be charged the $36.00 on the eighth calendar day.

Discover More Details ›
What happens if my bank account is negative for too long? ›

A negative bank balance can lead to overdraft fees, non-sufficient funds fees, account closure, and credit impact.

Tell Me More ›
What happens if I don't pay my negative bank balance? ›

You can't get in trouble for overdrawing your account but you may face fees, which could lead to financial difficulty. Your bank may close your account and may send you to collections until you repay the balance.

Read The Full Story ›
How do I get my negative balance back? ›

Request a deposit: Check with your credit card issuer to see if you can request the negative balance amount to be deposited to your bank account. You can also ask for a check, money order or cash. Make a purchase: This is the easiest way to resolve a negative balance.

Discover More ›
What happens if I leave my bank account negative? ›

A negative bank balance can lead to overdraft fees, non-sufficient funds fees, account closure, and credit impact. To avoid a negative bank balance, monitor your account, set up alerts, and consider linking accounts or using overdraft protection.

Know More ›
Will a bank account automatically close if it reaches zero balance? ›

Conclusion: In conclusion, a current account with a zero balance doesn't automatically face closure across the board. The fate of the account is influenced by a myriad of factors, including the bank's policies, the type of current account, and the duration of the zero balance.

See Details ›
How much do banks charge if you go negative? ›

The amount of the overdraft fee varies from bank to bank. On average the fee is about $35, but it could be anywhere from $10 to $40. Most banks charge an overdraft fee but there are some, particularly online banks, that don't.

View Details ›
Top Articles
CEO vs. CFO
How Much Personal Liability Does a CEO Have? | Oberheiden P.C.
Best Knuckle Dusters for Everyday Carry: A Comprehensive Guid
Craigslist Apartments Louisville Kentucky
Suhsd Aesop
Weapons Storehouse Nyt Crossword
Indian Restaurants In Cape Cod
Bendals Berry Patch
10 Ideias de Fachadas de Casas Simples com Varanda | Planner 5D
Diseña tu hogar soñado: Casita de ladrillo dibujo paso a paso
The Ultimate Guide To Twitter Analytics: Metrics, Tools & How To Get Started
Twitter analytics: Insights that can make your campaigns more effective
Latest Posts
Non-Cash Item Definition in Banking and Accounting
What Is the Average American's Savings Account Balance?
Article information

Author: Carmelo Roob

Last Updated:

Views: 6232

Rating: 4.4 / 5 (45 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Carmelo Roob

Birthday: 1995-01-09

Address: Apt. 915 481 Sipes Cliff, New Gonzalobury, CO 80176

Phone: +6773780339780

Job: Sales Executive

Hobby: Gaming, Jogging, Rugby, Video gaming, Handball, Ice skating, Web surfing

Introduction: My name is Carmelo Roob, I am a modern, handsome, delightful, comfortable, attractive, vast, good person who loves writing and wants to share my knowledge and understanding with you.