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Navy Federal After Chapter 7

New Visitor

Navy Federal After Chapter 7

I'm likely going to file Chapter 7 since I'm struggling with debt.

I spoke with a attorney this morning but forgot to ask this question. I have a Navy Federal bank account(very little money, only active for truck loan). With my Navy Federal account, I have a vehicle loan that I'm going to reaffirm and continue to pay. I also have a Navy Federal credit card with $8500 on it. I was thinking about transfering $2500 to a different card before filing Chapter 7, and then seeing if the I could afford the payment to keep this card active and pay off. I want to do this to keep a good reputation with Navy Federal because they have amazing loan rates and this is who I would like to use for a future vehicle loan. If I choose not to do that, and have the credit card debt included with Chapter 7, would they close my entire account or just the credit card? I'm going to call them too but wanted to ask here as well. Thanks for any help. 

4 REPLIES
Community Leader
Super Contributor

Re: Navy Federal After Chapter 7

Unfortunately, you would not be able to keep an unsecured account with a balance open through a Ch7. That would be considered "favoring" that creditor over other unsecured creditors. BK does not allow you to "play favorites". 

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
New Visitor

Re: Navy Federal After Chapter 7

Alright, thanks for the information. I will just reaffirm my vehicle loan and hope for the best with a loan down the road. I am going to call them to find out if my bank account will remain open. 

Regular Contributor

Re: Navy Federal After Chapter 7

You may also want to speak with NFCU (and/or your attorney) about what they will do with your account. I have read differing accounts on these forums about BKers with NFCU. Credit unions are a little different than traditional banks and may or may not allow you to keep your deposit accounts open after you burn them. PSECU closed mine and will not allow me back in. Since you are reaffirming the car loan that may change the picture. 

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
11/2017 EX 609; EQ 619; TU 558
Highlighted
Community Leader
Super Contributor

Re: Navy Federal After Chapter 7


capabk wrote:

You may also want to speak with NFCU (and/or your attorney) about what they will do with your account. I have read differing accounts on these forums about BKers with NFCU. Credit unions are a little different than traditional banks and may or may not allow you to keep your deposit accounts open after you burn them. PSECU closed mine and will not allow me back in. Since you are reaffirming the car loan that may change the picture. 


Agree - you DEFINITELY need to speak with them and find out what their policies are regarding your complete situation.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200