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NFCU Bankruptcy

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sarah6505
New Visitor

NFCU Bankruptcy

Hi I filed for chapter 7 about 5 years ago. I still have my NFCU checking but they NEVER let me have a credit card again or any line of credit. The only thing that was NFCU included in my chapter 7 was a credit card i believe it was around $7,000. I read on here if you never pay them back you can forget about it. I am willing to make payments to pay this off eventually but is this a guarantee?

 

I would hate to pay it back and still not be able to get credit with them again. I have even called and asked them but they will NOT give you that type of information so i am hoping someone on this site may have some information?.

 

Thanks

7 REPLIES 7
TheFIGuy
Established Contributor

Re: NFCU Bankruptcy

Data Points (DPs) suggest, yes, that is the case. If you don't pay them back the total owed amount you will not get any credit from them. I'm not sure about car/mortgage loans but from the DPs it shows credit for sure.

 

 

Message 2 of 8
FireMedic1
Community Leader
Mega Contributor

Re: NFCU Bankruptcy

Personally for that amount. I'm not rich or make a ton of money. But paying 7 grand just to have a credit card isn't something I'd do. Many wont pay an AF for a card. Each year they try to have and annual fee waived. Place that amount in savings or some type of investmemt for retirement. Theres always PENFED and other credit unions just as good. much lower amount I could see. 7 g's? Nah.


Message 3 of 8
despritfreya
Frequent Contributor

Re: NFCU Bankruptcy


@sarah6505 wrote:

Hi I filed for chapter 7 about 5 years ago.. . . NFCU included in my chapter 7 was a credit card i believe it was around $7,000. I read on here if you never pay them back you can forget about it. I am willing to make payments to pay this off eventually but is this a guarantee?


1.  The debt is not $7k.  To pay in full, it is $7k plus interest probably running at 24% per year for at least 5 years - not to mention any late fees that may be due but for the discharge injunction.

 

2.  You filed bk for a reason.  Why would you even think of paying something you have no legal obligation to pay?  Is getting a CC through this one particular CU that important?  Certainly not worth the cost.

 

3.  I assume you have begun the process of getting credit cards and have the ability to get into debt.  I doubt you need this particular type of card.  Let it go.

 

Just my humble opinion.

 

Des.

Message 4 of 8
Guyatthebeach
Valued Contributor

Re: NFCU Bankruptcy

Sarah6505,

 

Welcome to the forum! 

With regards to paying back the Navy Federal debt in your bankruptcy, you can repay the debt, but it is not a guarantee they will lend to you. I believe you have to establish a payment plan through their collection department. 

Given the fact you are 5 years after filing bankruptcy and the amount you will have to repay, I don't think the reward is really worth the effort and that's a lot of money to repay just for a change for a loan or credit card. If you pay NFCU back, you going to pay others back? I was able to get approved for credit cards and loans with every creditor I burned without paying a penny back, and that includes big banks like Chase. I personally didn't join Navy Federal until almost 5 years post bankruptcy. 

If you are looking for a credit union that caters to the military community, look at Marine Federal, Penfed, and you can google for others.There are some banks and CU's out with better rates and the same level of customer service. You will just have to look. 

Hope that helps!

 

Guyatthebeach

Message 5 of 8
sarah6505
New Visitor

Re: NFCU Bankruptcy

Yes that is very true! Thank you

Message 6 of 8
Shooting-For-800
Senior Contributor

Re: NFCU Bankruptcy

I love NFCU but there are plenty of fish in the sea that dont cost $7k+

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 7 of 8
TRC_WA
Senior Contributor

Re: NFCU Bankruptcy


@FireMedic1 wrote:

Personally for that amount. I'm not rich or make a ton of money. But paying 7 grand just to have a credit card isn't something I'd do. Many wont pay an AF for a card. Each year they try to have and annual fee waived. Place that amount in savings or some type of investmemt for retirement. Theres always PENFED and other credit unions just as good. much lower amount I could see. 7 g's? Nah.


Exactly this.  ^^^

 

I burned BECU in my Ch 13 for about $8k.  They did get some of their money back (about $3k) over the course of the 5 year payment plan... but I know they'll never let me back in the door and I'm not going to waste my time trying because I'm definitely not gonna pay them the balance.

 

Good news is there's plenty of other CU's out there.  I just got a $2500 Visa with PenFed last week shortly after opening a savings account with them.

FICO8 current as of : 2-25-24 EQ: 655 TU: 653 EX: 656
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Gold $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 8 of 8
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