NFCU and Bankruptcy

[tpayne105]

That adds to my question.  I filed having a $2500 balance on a secured card with them. The $2500 in the savings is what backed the secured card.  That $2500 is listed as a pending credit adjustment and has been since I filed. 

I agree I want to keep my relationship good with NFCU.  They've been fantastic before and during this ordeal.  

I also know I am not allowed to pay them the debt during the bankruptcy.  

[Anonymous]

@tpayne105  True, you might have to wait until after the bankruptcy is discharged. But once the discharge is final, I recommend repaying Navy Federal as soon as possible. You may even be able to use the frozen funds you've mentioned. Why they are frozen is unknown to me, but I would talk with the representative at Navy Federal to clarify.

[tricie17]

It appears that they may have frozen the money as it was a security for the card. Did not realize that it was for a card. My account stayed intact even with the security for the secured card. You need to sit down with a Customer Service Rep in their BK Dept in person and have a conversation. They will let you know. One thing about Navy is everyones account is treated different. The Trustee may have already started paying them since you are 2 1/2 years in which changes the story a little bit and depending on your claims.

Make it positive and it always turns out for the best.

[SUPERSQUID]

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@tpayne105 wrote:

Hello 

I am 2 years and 4 months into a Chapter 13...it sucks but I have learned to live with it.  At the time of filing I had a checking, savings and a secured credit card with NFCU.  I owed $2500 on the secured CC.  They did close the card as I did include in the bankruptcy.  I did, and still do, have $2500 in my savings account

My checking and savings account are still open and I have used the checking without issue.  On sign in to my accounts, I have the tag of "your account is being provided for informational purposes, etc..."   I think that is the bankruptcy tag.  But when I click the savings tab, it shows $2505 as a balance and under transactions it shows a credit of $2500 with a statement of "point of sale adjustments indicate a merchant has initiated a credit to your checking account.  Your accout balance will be updated once the transaction is fully processed."

So being 2+ years into the bankruptcy, I applied for a small personal loan and of course got denied with a reason of "you caused Navy Federal a loss."

I get why the computer would spit that out but isn't that money just sitting in my savings?  It doesn't draw interest but just sits there.   I guess they can't or won't just take that $2500 in savings to cancel out the secured CC?   Of course, looking back, I should have canceled the card myself and paid it with that $2500 but I didn't and it is too late now.  

Any ideas about that $2500 sitting in savings?   It has been there since the start of the bankruptcy (March 2020).  

Any way, I appreciate your help and guidance.  This group is awesome...

Thank you

Todd

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I know when i filed my bk7 i had to list all my bank accounts with balances and any cash on hand. i think they would have gobbled that 2500 up and spread it out among my creditors.

Are you able to skirt that issue with bk13?