Chapter 13 with NFCU

[Anonymous]

Due to my poor health , ( Disabled Veteran )
I am behind on my Credit Cards . I have a new car loan from NFCU which i am current on for almost a year . My question is how is NFCU and Chapter 13 ? I dont want to make them mad , they have been good to me , but , my health is failing . I want to be paid as agreed wth them but discharge my Credit Cards . I have heard they freeze your debit card. I cant be without it . Lots of Doctors and things . Im on Oxygen . Thanks

[Shooting-For-800]

First thing you should do is open a new checking account with a bank you owe nothing to and ideally never did.

[Anonymous]

Watch out for cross collateralization.  Technically they can tack on what you owe on the CCs, to the car loan.  Credit unions have this in their loan docs.

[Anonymous]

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@Anonymous wrote:

Watch out for cross collateralization.  Technically they can tack on what you owe on the CCs, to the car loan.  Credit unions have this in their loan docs.

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... but not all credit unions do. I believe Navy Federal does not cross-collateralize. Double check by reviewing your own promissory note.

On another note, it is likely that all credit cards will be closed when you file bankruptcy (not just the one(s) issued by Navy Federal).

Why Chapter 13 vs. 7? If you cannot afford your medical treatments/prescriptions without credit cards, I question if all the applicable deductions haven't been taken into account when reviewing a possible Chapter 7 filing. Have you spoken with more than one bankruptcy attorney? 

[Anonymous]

With my VA Disability it is included as income and must be reported . My SSDI is not reported . Plus i need to keep my Car i have so many docs . Dont meet the Chap 7 means test . Thanks

[OmarR]

NFCU does cross-collateralize.

Just had it happen to a family member that tried to burn NFCU for $8,000 about 2 weeks ago.

[Anonymous]

Thanks for the Info Omar

[Shooting-For-800]

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@Anonymous wrote:

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@Anonymous wrote:

Watch out for cross collateralization.  Technically they can tack on what you owe on the CCs, to the car loan.  Credit unions have this in their loan docs.

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... but not all credit unions do. I believe Navy Federal does not cross-collateralize. Double check by reviewing your own promissory note.

On another note, it is likely that all credit cards will be closed when you file bankruptcy (not just the one(s) issued by Navy Federal).

Why Chapter 13 vs. 7? If you cannot afford your medical treatments/prescriptions without credit cards, I question if all the applicable deductions haven't been taken into account when reviewing a possible Chapter 7 filing. Have you spoken with more than one bankruptcy attorney? 

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What is your income breakdown?

Spouse?

Chapter 7 wont take car if no equity.

[webhopper]

I included Navy Federal on my Chapter 13.  

Navy Federal car loans are cross collateralized with your other debt. Even if you pay off the car they won't release the lien unless you pay all of the debt you owe to them in the Chapter 13.  If you want to keep the car, refinance it through someone else. Or just let them take it. 

Once you file Chapter 13 on them, they will freeze your out of your normal bank accounts.  I am not able to log into their website anymore without calling and no I won't be calling them.  I moved my checking and savings over to another bank. 

[OmarR]

Regarding my "extended family" that tried to burn NFCU for $8,000, it was for a credit card that was more than 90 days past due. 

A large deposit of $12,000 was made into their checking account, which had a zero balance and they were already frozen out of. They had just forgotten to switch over DD info (to another bank) for this particular deposit, which was  school related funds. NFCU took out their $8,000 and snail mailed them a $4,000 cashier's check.

"NFCU stole our $%$%$% money" was the first words out of their mouth. Um, no, they didn't.