I'm scared about my bank account being closed?!?

When a bank account is closed for negative balances etc it usually doesn't go on your credit but it is reported to Chexsystems. If you're reported to Chexsystems it usually stays on record for 5 years and prevents you from opening an account with other banks. Sometimes banks also add on a charge off fee onto the amount you owe but it's not enormous. You should get the information for the collection agency and pay the fee, the bank should let you open another account. This happened to me once with a major bank and once I showed them proof that I paid the fee they re-opened my account the same day. Also if it was reported to Chexsystem ask the bank if they will delete it which sometimes they'll do and considering this was a first offense and a small dollar amount you have a good chance.