In the middle of chapter 7, NFCU dropping off report.

[Waldemar]

Currently in the middle of C7 and burning a few banks in the process. Most accounts by now are showing closed, zero balance, and "included in bankruptcy," but my NFCU accounts (2 CC and auto loan) are suddenly removed from my credit report, including my auto loan, which I never been late, and I plan to keep as I owe less than what it's worth, plus my rate is low 4%. It's only been less than 25 days since I filed. I wonder if the NFCU accounts will show up again on my report at some point, and what is the reason NFCU does this? If anything, it helps me by having less negative info reported so don't understand the reasoning.

Also, I'm aware of the credit union doing cross-collateral but whenever I sign the reaffirmation my attorney is making sure it says they will waive it so I won't have issues when the loan is paid and I try to get my title. Any suggestions?

[2b2rich]

Some of mine dropped off and came back, a few never came back.  If you reaffirm your auto  loan, it will most likely reappear and continue to report your payment activity.  If you owe anything on your CCs and I do not know if NFCU has a cross colateral in place, but if they do, and you have checking or savings, they could use it to pay toward the cards.  

[Tazman81]

Definitely be sure to review with your attorney on the reaffirmation.  As you mentioned, typically NFCU has a cross collateral clause which does include vehicles.  So if they have an interest in your vehicle and you default on other debt with NFCU, they can use the value of the vehicle as collateral.  I also think the lender has to agree to the reaffirmation, so if NFCU sees the same value you see in the vehicle, it may be reason for them not to want to allow you to keep the vehicle, unless of course you are able to show a bankruptcy exemption for the additional value which would make it more beneficial for them to accept the reaffirmation and release the title once the original loan balance is satisfied.  Based on all the previous stories, my guess is that you would not be able to get any other credit from NFCU due to burning them via the credit cards.  Definitely let us know how this goes because I do not think I have seen any data points around this particular scenario.  I wonder if your attorney has had experience doing this previously with NFCU that can give you some additional insight.  Best of luck and definitely report back.  I would be interested in how this scenerio plays out.

[sccredit]

Navy dropped off my reports and never came back on. I had an auto loan with them that was breakeven at best. They refused to waive cross-collateral on the reaffirmation so we told them we'd just surrender. Auto loan was about $40k at 3.29%, one credit card for $25k and a PLOC for $15k. Ended up leasing a new truck in DW's name since she wasn't a part of the BK. Right before discharge they called my attorney and offered reaffirmation on the truck by itself. I declined as we'd already leased something else and told them where to pick up their truck. So if they don't offer just be patient and they will likely come back around. In hindsight I should have been more patient and that truck would have been paid off already lol. 

[Anonymous]

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@Waldemar wrote:

Currently in the middle of C7 and burning a few banks in the process. Most accounts by now are showing closed, zero balance, and "included in bankruptcy," but my NFCU accounts (2 CC and auto loan) are suddenly removed from my credit report, including my auto loan, which I never been late, and I plan to keep as I owe less than what it's worth, plus my rate is low 4%. It's only been less than 25 days since I filed. I wonder if the NFCU accounts will show up again on my report at some point, and what is the reason NFCU does this? If anything, it helps me by having less negative info reported so don't understand the reasoning.

Also, I'm aware of the credit union doing cross-collateral but whenever I sign the reaffirmation my attorney is making sure it says they will waive it so I won't have issues when the loan is paid and I try to get my title. Any suggestions?

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We also burned NFCU really bad, multiple CCs, and an auto loan.  All of our NFCU accounts disappeared as well.  Our attorney suggested we contact NFCU to see if our car loan was cross-collateralized with our unsecured debt before we agreed to any reaffirmation.  We got a message back from NFCU's bankruptcy department that they don't cross-collateralize.

Once we signed the reaffirmation for the car loan it showed back up, I think even before our discharge was finalized.

Hope that helps!

FS21

[jmcmillan]

All of my NFCU accounts discharged in bankruptcy were removed from my reports. The closed/paid credit lines still remain, though.

[Waldemar]

Just a quick update... nothing major has happened tbh. I had my 341 (over the phone) last month and it lasted maybe 9 mins, no creditors present (as expected). Haven't heard anything yet as to reaffirm my auto loan which was discussed during the meeting, or any other updates from the trustee (or my attorney). I did asked my attorey if there would be any issues reaffirming my loan with NFCU and he said no, and also is up to the judge not NFCU. As long as I'm current (which always been) I would not have any issues. Also my credit report now shows no active accounts and no balances, relieved (early I know) yet odd feeling. I'm hoping to get discharged by late June but I'm confused because I saw another deadline "Deadline for filing claims (govt.)" which has a later date than the deadline for creditors but hopefully this won't hold me from getting a late June discharge, instead of a Sept discharge. Until next update.

[Waldemar]

So my C7 was discharged Monday, precisely 105 days after I filed. My attorney's office dropped the ball and did not file the reaffirmation for my NFCU auto loan, which I needed to be done, so my payments get reported to the credit bureaus. But I spoke to NFCU BK dept, and they confirm I do not need the reaffirmation except payments won't be reported without it but that's a big one for me as I try to rebuild my credit. Not seeing a auto loan on my credit is odd even though I'm paying for it, never been late. I'm definitely keeping it, great rate, owed way less than what is worth and is a great (Toyota) car. My attorney's office sent me the reaffirmation doc and will send to the court to file, apparently the case may not need to be reopen since there's not gonna be a hearing and my intention to keep the vehicle was known to the trustee and it was listed and calculated as such on the documents. Hopefully they can get it fix, have it show on PACER so then NFCU can continue to report (as of March too).

Meanwhile, I already applied for my first credit card post bk, and I got approved for Capital One Plat, 3k limit with a 26.99 rate and no annual fee. Not bad for my first card post bk. I'm considering other cards, but I refuse to pay annual fees at this point so, will see. I did try for some secured cards but no luck yet, especially since some of those banks were burned in the bk. 

[Horseshoez]

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@Waldemar wrote:

Meanwhile, I already applied for my first credit card post bk, and I got approved for Capital One Plat, 3k limit with a 26.99 rate and no annual fee. Not bad for my first card post bk. I'm considering other cards, but I refuse to pay annual fees at this point so, will see. I did try for some secured cards but no luck yet, especially since some of those banks were burned in the bk. 

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Here are a few lesser known financial institutions which offer secured credit cards, and are also good to keep for the long run:

• Fifth Third Bank:
  • Pros: Max limit of $5,000, plus I've heard anecdotally their secured card can graduate to unsecured in as little as 3 months.
  • Cons: No cash rewards and a$24 annual fee with no prorated refund if/when the card graduates.
• TDBank:
  • Pros: Max limit of $5,000, automatic monthly graduation review starting with the 7th statement (which was exactly 6-months from receipt of the card in my case), cash rewards of 1% for all purchases while the card is secured, security deposit pays interest (but not much), prorated refund of annual fee if/when the card graduates, and a tiered rewards structure of 3% (dining), 2% (groceries), and 1% (all other purchases) when the card graduates.
  • Cons: Annual fee of $29 (see notation above regarding prorated refund)
• FNBO (First National Bank of Omaha):
  • Pros: Max limit of $5,000, no annual fee, automatic graduation review starting at 11 months, the ability to increase security deposit/credit limit on an as needed basis (up to the limit of $5,000).
  • Cons: No rewards.