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Navy Federal and Bankruptcy

Valued Member

Navy Federal and Bankruptcy

I just filed for BK today and my hearing is set for June 20th.  Yay!!  I am burning Navy Federal in the process. Smiley Sad  I wanted to know if anyone out there has personally burned NFCU and got back in their good graces after paying them off.  I want to know if this will be the end all for my relationship with them or if they'll give me a second chance to prove my love for them.  

 

Thanks for any and all input!!  You guys rock! Smiley Happy

Message 1 of 11
10 REPLIES
Established Member

Re: Navy Federal and Bankruptcy

Hi there - it is my understanding that NFCU is BK friendly to those who repay balances owed at the time of BK.  However, I am uncertain of a timeframe. Good luck to you on your rebuild Smiley Happy

Filed BK7: 3/24/16 Discharged: 6/27/16
Staring Scores: May 2016 -
TU - 491. EX - 520, EQ - 512 - Goal Scores: 750
Current Scores: MyFico 8 - May 2017 TU - 648, EX - 636, EQ - 658 In the wallet: Credit One CC ($600 CL) NFCU Visa CC ($8200 CL) NFCU CLOC ($7500) Amazon ($800 CL) Walmart CC ($700 CL) there are more but I'm too lazy to update
Message 2 of 11
Valued Member

Re: Navy Federal and Bankruptcy

Thank you so much for your input Wicked!
Message 3 of 11
Regular Contributor

Re: Navy Federal and Bankruptcy

The timeframe shouldn't make a difference -- either the loss is paid or unpaid. Once paid, the standard underwriting guidelines apply, which includge (generally) being unable to get an unsecured credit card within a year of discharge. 

Message 4 of 11
Valued Member

Re: Navy Federal and Bankruptcy

Thanks leonel. Should I wait until after my 341 meeting or after discharge before paying NFCU back?
Message 5 of 11
Highlighted
Frequent Contributor

Re: Navy Federal and Bankruptcy

do you know if PenFed is bk friendly too? I'm in Ch 13 and i burned them in my bk...about $22k

Message 6 of 11
Valued Member

Re: Navy Federal and Bankruptcy

I'm not sure if PenFed is BK friendly. Hopefully someone on the boards can answer your question. I'm burning them as well. I was hoping to get in good with NFCU and wait to try and get back in with PenFed.
Message 7 of 11
Established Contributor

Re: Navy Federal and Bankruptcy


CButta_Baby wrote:
Thanks leonel. Should I wait until after my 341 meeting or after discharge before paying NFCU back?

 

ABSOLUTELY wait until AFTER the BK is discharged.

 

Secondly, consult with your attorney as to when (how much time has past post BK) it would be okay to "pay" Navy.

 

Remember, you are in bankruptcy.   You shouldn't appear to become flush with  Cash all of a sudden and out of no where.

 

Appearances matter.

.

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 8 of 11
Contributor

Re: Navy Federal and Bankruptcy

I am considering whether I want to pay NFCU to get back in with them or not. I burned them in a sense that there was unpaid overdraft fees under $500 discharged, however, I don't agree with the overdraft fees. The overdraft fees resulted from a 'temp. credit reversal' from a debit dispute. They claim they sent a letter requesting more information, I did not receive that letter. I was out of state for a few months caring for my sick father and moved when I returned home. When I got home my account was closed with a $0.00 balance. It was not negative.  My regular checking is with Chase anyway so when I saw NFCU closed my account I was over it all. When i received a copy of the bankruptcy forms, I saw Navy Federal listed. I had just read how BK friendly they are and can't help but sulk.  I am 112 days post discharge, have no collections, the late pays are on student loans that are pending removal (most recent reported 3 yrs ago), and my FICO 8 score is now 679 (was 574 on 2/1/17). Wish the banks used the FICO 9 scores (currently 739). After 3 car and CC payments appear on my credit file, I believe I could have received an approval. I did send them a letter explaining the circumstances and waiting to hear back. I am hopeful but doubtful that they see my situation and realize how quickly they could make the $476 back by simply extending credit to me in the future...but again, doubtful. Will update if my letter worked. 
Fico 8 (11/25/17): EQ 669, TU 639, EX 670
In the garden … till Spring 2018

3/17: Cap1 QS MC ($750 CL); 4/17: Kohls Charge ($700 CL)
5/17: Overstock Store ($2,600 CL); Victoria Secrets ($750 CL)
10/17: Cap1 QS VS ($3,000 SL); Discover It ($9,000 SL)
10/17: HSN/Comenity ($2,650 CL)
11/17: Amazon Prime Store ($1,400 SL); Walmart ($300 SL)

Rebuilding -- Ch. 7 BK (10/26/16). Starting scores: EQ 541. TU 581
Message 9 of 11
Community Leader
Senior Contributor

Re: Navy Federal and Bankruptcy


liv22 wrote:
I am considering whether I want to pay NFCU to get back in with them or not. I burned them in a sense that there was unpaid overdraft fees under $500 discharged, however, I don't agree with the overdraft fees. The overdraft fees resulted from a 'temp. credit reversal' from a debit dispute. They claim they sent a letter requesting more information, I did not receive that letter. I was out of state for a few months caring for my sick father and moved when I returned home. When I got home my account was closed with a $0.00 balance. It was not negative.  My regular checking is with Chase anyway so when I saw NFCU closed my account I was over it all. When i received a copy of the bankruptcy forms, I saw Navy Federal listed. I had just read how BK friendly they are and can't help but sulk.  I am 112 days post discharge, have no collections, the late pays are on student loans that are pending removal (most recent reported 3 yrs ago), and my FICO 8 score is now 679 (was 574 on 2/1/17). Wish the banks used the FICO 9 scores (currently 739). After 3 car and CC payments appear on my credit file, I believe I could have received an approval. I did send them a letter explaining the circumstances and waiting to hear back. I am hopeful but doubtful that they see my situation and realize how quickly they could make the $476 back by simply extending credit to me in the future...but again, doubtful. Will update if my letter worked. 

NFCU is very strict on not extending unsecured credit to someone who has caused a loss.

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
730 EQ FICO 11/2017
750 TU FICO 11/2017
735 EX FICO 11/2017
$20k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE
Message 10 of 11