BK and NFCU

[Anonymous]

I'm about to file BK and currently have a checking, savings, CD, CC and and auto loan. The CC and auto loan are current and will have no problems in paying them through and after filling. Will they allow me to keep my CC after the filling? The car is worth right about wht I owe on it and intend to keep that as well.

[Anonymous]

Your credit card will be automatically closed once NFCU learns of the bankruptcy. If the balance is minimal, you may want to call their bankruptcy department and ask if a reaffirmation may allow you to keep it open. Most likely the answer will be "no."

[Anonymous]

On another note, I don't know the credit union's setoff policy as it relates to bankruptcy. It is generally not recommended that you file while you have funds on deposit with a lender, because there is the possibility of the lender taking the funds to pay off/pay down your debt. Even if this doesn't happen, some institutions will freeze your account, making it hard to pay bills.

Perhaps someone here knows Navy Federal's general process?

[Anonymous]

Well if they are going to close it anyway I might as well include it. I hate to do that because thay have been a great CU to deal with. Is there a direct way to get in touch with their Bankruptcy Department?

[Anonymous]

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@Anonymous wrote:

Well if they are going to close it anyway I might as well include it. I hate to do that because thay have been a great CU to deal with. Is there a direct way to get in touch with their Bankruptcy Department?

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You have to include it anyways. Even if they keep it open (which they won't) you still HAVE to include them.

[dursty87]

I included Navy in my BK.  I wouldn't have money in your accounts with them especially if you are delinquent on your accounts with them (or are going to be in the near future).  They will take money to pay towards your CC.  Also, they do cross-collaterize and this is something to be concerned with if you plan on keeping your vehicle but include your CC.

[Anonymous]

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@dursty87 wrote:

I included Navy in my BK.  I wouldn't have money in your accounts with them especially if you are delinquent on your accounts with them (or are going to be in the near future).  They will take money to pay towards your CC.  Also, they do cross-collaterize and this is something to be concerned with if you plan on keeping your vehicle but include your CC.

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Are you sure Navy Federal practices cross-collaterization? I have never read this in any agreement or promissory note. What they do for sure is use deposit accounts as security interest on credit accounts, meaning your checking or savings could be debited from a defaulted credit card.