topic Re: Worth it to pay NFCU back or try to use PenFed? in Bankruptcy

Worth it to pay NFCU back or try to use PenFed?

Anonymous — Sat, 27 Jul 2019 20:29:34 GMT

I filed ch13 in March of 2016. Discharged July 2019. Kept my auto loan through nfcu and paid around 10k through that but burned them for around 6k unsecured unfortunately. NFCU is a great credit union and I would do just about anything to get back in with them. With that being said, would an amount like 6k be worth it to pay back in order to get back into their good graces? I also bank with PenFed but I'm hearing conflicting stories on whether or not they are bk friendly.

Re: Worth it to pay NFCU back or try to use PenFed?

pizza1 — Sat, 27 Jul 2019 20:49:13 GMT

@Anonymous wrote:
I filed ch13 in March of 2016. Discharged July 2019. Kept my auto loan through nfcu and paid around 10k through that but burned them for around 6k unsecured unfortunately. NFCU is a great credit union and I would do just about anything to get back in with them. With that being said, would an amount like 6k be worth it to pay back in order to get back into their good graces? I also bank with PenFed but I'm hearing conflicting stories on whether or not they are bk friendly.

Did you settle in your BK13? Was it not a 100% payback? Even if you paid them back, you would have to jump thru major hoops to get credit with them again, and possibly even an appeals process. Only you can decide if it's worth it to you, but we never recommend paying back a creditor from a BK.

As far as PF goes...they are BK friendly, it just takes a little time to get credit. I have a Visa and PLOC for 2 yrs now. I would wait till your DC shows officially though on your reports, and you have at least rebuilt with 1-2 cards before applying to them, and have at least one year of payment history with other cards. They like you to be at least one from your BK DC. I would apply to them for membership with them, and make regular deposits whether savings or checking to get started.

Re: Worth it to pay NFCU back or try to use PenFed?

Anonymous — Sat, 27 Jul 2019 20:49:41 GMT

In my ch13 I went through a 3 year plan and didnt pay any unsecured debt back. Only secured. I also have 2 years payment history on two accounts, 7 months on 1 account. No installment loans. Discharge has updated on all reports. I also somehow got a CLOC through PenFed mid chapter 13 for $500 but I think it was an error on their part. Not complaining though. If I were to app for either an auto loan or the Promise visa in 2 weeks when I am done with this mortgage process, would I have a good chance of being approved? My score on PenFed shows 690

Re: Worth it to pay NFCU back or try to use PenFed?

pizza1 — Sat, 27 Jul 2019 21:00:23 GMT

@Anonymous wrote:
In my ch13 I went through a 3 year plan and didnt pay any unsecured debt back. Only secured. I also have 2 years payment history on two accounts, 7 months on 1 account. No installment loans. Discharge has updated on all reports. I also somehow got a CLOC through PenFed mid chapter 13 for $500 but I think it was an error on their part. Not complaining though. If I were to app for either an auto loan or the Promise visa in 2 weeks when I am done with this mortgage process, would I have a good chance of being approved? My score on PenFed shows 690

Thats awesome you already are established with them! I didnt realize your have reestablished credit as well, so that changes things. I would most definitely wait till after your mortgage process, and you've closed before applying though. Thats a decent score for approval, and you already are established with them, thats a plus. Its a 50/50 shot, but you could get instant approval and the lowest they approve for for that card is $500, I know, because thats how I started out as well. Or it could go to pending status...

if declined, wait for a "survey email", then fill it out, and in the box where you can write something, tell them how much you are disappointed in the denial, as you were looking forward to building your long standing relationship with them, and if they could please reconsider and approve your promise application for $500, to allow you to prove yourself and allow history building.

Thats what I did, and they approved it! I eventually got it up $5K, and then got the Plat Rewards card Good luck and keep us posted!

Re: Worth it to pay NFCU back or try to use PenFed?

Anonymous — Sat, 27 Jul 2019 21:03:54 GMT

Yeah definitely going to wait until after I close and the loan is funded. Don;t want to ruin anything with buying my first home! I will definitely give the promise visa a try though seeing as how I have been with Penfed for 2.5 years and have had my CLOC for the same amount of time. I also have my direct deposit with them. If declined I will try the recon through the survery. Thanks for the info

Re: Worth it to pay NFCU back or try to use PenFed?

DaveInAZ — Sun, 28 Jul 2019 15:27:09 GMT

I strongly oppose re-paying anyone any debt discharged in BK. I don't think anyone should repay the debt and I don't think the lender should accept it. The intent of bnkruptcy law is to give you a fresh start from overwhelming debt. It is illegal for any creditor to make any attempt to collect a debt discharged in BK, and yes 'volunteering' to repay a debt is skirting the law, but the key here is 'skirting the law'.

As an example I didn't reaffirm my mortgage in my 2010 BK7, so the debt was discharged but the lien remains, so I need to keep the payments current to avoid foreclosure (never late before, during, or sone BK). BMO Harris took over the bank that gave me the mortgage and they are very strict: They refuse to setup automatic payments saying that taking the payment from me can be considered an attempt to collect the discharged debt, they'll only accept payments voluntarily offered to them, my bank's Billpay service. They refuse to consider refinancing the mortgage as that can be consider an attempt to collect. Although sometimes a pain for me they're doing things the right way.