Banking and Insurance with a creditor that will be in Chapter 13 plan?

[worriedparent]

We currently bank with USAA and have our checkings, life insurance, auto insurance and homeowners insurance with them.   We have 2 credit cards and 2 unsecured loans with them.   I know we need to find another bank to do banking with since we have 4 total accounts that will be part of the ch 13 plan, but my question is can they terminate our auto, homeowners and life insurance policies?    the guy I had a consultation did not know about the insurance products but did tell me to open accounts with another bank for banking.  My next consultation is on Thursday with a different attorney. 

Any information out there about USAA in a ch13 would be greatly appreciated.  

[0REDSOX7]

You're asking excellent questions.

While I cannot speak for USAA, when we filed, we were advised to ensure our banking and insurance were held in places where we did not owe any money.

Banks have in their terms what is called a bank set off. They can freeze your assets to pay what debts you have with them. It would be wise to move to a new financial institution (credit union) to ensure your funds are not frozen.

Same with he insurance. They may kick you out, but will jack up your rates.

Avoid Wells Fargo like the plague - they will freeze your accounts even if you don't have any debts with them.

Hope that helps.

We moved from BofA to a local credit union before we filed to prevent frozen assets.

[StartingOver10]

I'm a Realtor. Once of my clients had a short sale and USAA was the lender (and the insurer). The minute the short sale closed USAA cancelled all of their insurance products - and they had everything with them (life, auto, home etc) for decades (over 30 yrs). 

So make your preparations before you file.

[worriedparent]

Thanks that is extremely valuable information to have. Much appreciated.

[pizza1]

I had a cc that CO about 6 years ago ( long before I filed BK7) with USAA for several thousand. I've had my car insurance with them for 19 years, and still have it. I did notice though that after my filing last year, my rates went up by $10 a month. They were never included IIB, but then again, with a BK7 it doesn't matter, all debts previous and current whether Included or not are. They never touched my insurance, and I still have it.

[Mike8181]

I bank with chase and burned them in the ch7. No issues.

[amber78]

 I bank with USAA and also have my insurance etc with them. I had a very small secured CC and then filed ch 7. ALthough I always paid on that card, usaa closed my CC account and started reporting KD to Experian. Ive been fighting with them for the past three months to get it removed (as its false I never paid late). Im attemptinig to get away from USAA asap

[mynameainttracy]

We were afraid they would cancel our insurance and afraid we would have issues with a getting a new provider after filing, so we moved it prior to filing our chapter 13. After a couple of years of being miserable with the new provider we called USAA and signed back up with no issues. When we were talking to them about coming back they said we could have stayed and there wouldn't have been any issues. That being said we only filed on 2 cc's with them, no mortgage or auto loans, etc.