Is it safe to put money in a bank if your burned them?

[user365735]

I know this is probably stupid but I burned discover and I'd like to start using an old savings account I had with them...I was discharged in December, no issues right? 

[Creditwiser]

You should not have an issue at all as long as Discover is discharged and IIB .  I did the very same thing in 2014 and still have money in their online savings acct. 

[Jeffster1]

I IIB WF, Penfed, USAA, and Chase, and I have money in all of them. No issues at all.

[user365735]

Thanks everyone. I feel safer now they are at 4.15% so right now new pennies are going to them..feels good to actually have savings!!!

[Lurker22]

banks shouldn't be an issue, CU's are a totally different story - do NOT put money in them if you burned them (there are exceptions but few and far between) 

[sccredit]

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@Lurker22 wrote:

banks shouldn't be an issue, CU's are a totally different story - do NOT put money in them if you burned them (there are exceptions but few and far between) 

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After a debt is discharged the CU cannot come after money in an account. The debt no longer legally exists and even cross collateral agreements have no effect at that point. Some CUs won't let you have a deposit account post DC (NFCU is one I can think of) but they can't touch your money if it's there. 

[Lurker22]

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@sccredit wrote:

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@Lurker22 wrote:

banks shouldn't be an issue, CU's are a totally different story - do NOT put money in them if you burned them (there are exceptions but few and far between) 

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After a debt is discharged the CU cannot come after money in an account. The debt no longer legally exists and even cross collateral agreements have no effect at that point. Some CUs won't let you have a deposit account post DC (NFCU is one I can think of) but they can't touch your money if it's there. 

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correct, that's why they'll cross collaterialize before the case is discharged (as is their legal right) - and most will then kick you out of the CU until they're made 100% again (that they legally can do) 

[sccredit]

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@Lurker22 wrote:

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@sccredit wrote:

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@Lurker22 wrote:

banks shouldn't be an issue, CU's are a totally different story - do NOT put money in them if you burned them (there are exceptions but few and far between) 

---

After a debt is discharged the CU cannot come after money in an account. The debt no longer legally exists and even cross collateral agreements have no effect at that point. Some CUs won't let you have a deposit account post DC (NFCU is one I can think of) but they can't touch your money if it's there. 

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correct, that's why they'll cross collaterialize before the case is discharged (as is their legal right) - and most will then kick you out of the CU until they're made 100% again (that they legally can do) 

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If anyone signs a cross collateral agreement after filing their attorney is straight up incompetent. Any cross collateral agreement from before filing is null and void short of debtor reaffirming, which would be foolish as well. And, yes, a lot of CU's won't allow you to have deposit account. And, yes, that is absolutely their right.

[Lurker22]

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@sccredit wrote:

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If anyone signs a cross collateral agreement after filing their attorney is straight up incompetent. Any cross collateral agreement from before filing is null and void short of debtor reaffirming, which would be foolish as well. And, yes, a lot of CU's won't allow you to have deposit account. And, yes, that is absolutely their right.

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NOGA District disagrees, they honor cross collateral agreements signed before filing, I had 1 instate CU cross collateralize and one out of state, neither was required to obtain court permission - when I inquired I was told it was their right with the CC agreement

[sccredit]

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@Lurker22 wrote:

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@sccredit wrote:

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If anyone signs a cross collateral agreement after filing their attorney is straight up incompetent. Any cross collateral agreement from before filing is null and void short of debtor reaffirming, which would be foolish as well. And, yes, a lot of CU's won't allow you to have deposit account. And, yes, that is absolutely their right.

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NOGA District disagrees, they honor cross collateral agreements signed before filing, I had 1 instate CU cross collateralize and one out of state, neither was required to obtain court permission - when I inquired I was told it was their right with the CC agreement

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Central District CA was different. NFCU could enforce the cross collateral on an auto loan, which they tried. I told them they could have the vehicle and bought another. Then they came back and offered the vehicle without enforcement of the cross collateral. DCU tried to enforce the cross collateral as well and was shot down, I had an unsecured credit card and they wanted the $1,100 in cash in my DCU savings account. They were not allowed to touch it.