Navy Federal Credit Union (NFCU) After Including in Bankruptcy - Data Point

[Tazman81]

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@Anonymous wrote:

OP, I read your previous thread linked above.   Did you get back in with AMEX?

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Yes, got back in with AMEX, but it was about 5yrs or so after discharge.  There are some threads floating around about people being able to get back in with them.  It also probably helped my case that I have a Corporate AMEX that I use heavily and I was an AU on another AMEX account.  But I do have the Platinum card, which I am the primary for.

[Tazman81]

I just wanted to provide a quick update to #8 above.  Originally I stated that I had not received a response from NFCU via the "priority" email address to them listed on the BBB website. 

I just received a written response through postal mail.  The response thanked me for bringing my concerns to their attention.  It confirmed that the interpretation of the "change in policies" by the original loan officer was incorrect.  It advises the lending policy is still the same.  Since I caused NFCU a loss during bankruptcy, I would need to repay the loss prior to them being able to extend credit.

So, same conclusion as above, but just wanted the community to know that I did receive a response.

[GatorsFan84]

Thanks for update!

[Anonymous]

Sorry to bump up an old thread but does anyone know what NFCU thinks about the following situation?

I have an NFCU visa
My wife has an NFCU visa
We have a joint checking with NFCU

I'm considering filing ch7 bankruptcy just myself not my wife. Would they take adverse action on her card and our checking?

[Anonymous]

While I'm not sure if they can or would, I would absolutely move my cash accounts somewhere else if I owed them $$.

[Anonymous]

Google the term cross-collateralization and that will tell you all you need to know to draw your own conclusions. As soon as I made the decision to file bk I moved my direct deposits and my balances elsewhere. (before filing, that is.)

OP - thank you for the info, even though I am not/will not be a NFCU member. I would very much like to have PSECU check/savings back but don't ever want to touch another credit product with them again. I may yet approach them. I am going to sit on that one though. Previous posters are correct, CUs are much more protective of their institutions when they are burned in BK. My membership, by all sights and appearances, is still open, I just don't have online access to it. They "refunded" me money (that I can't access) in the middle of a bk! 

[Tazman81]

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@Anonymous wrote:
Sorry to bump up an old thread but does anyone know what NFCU thinks about the following situation?

I have an NFCU visa
My wife has an NFCU visa
We have a joint checking with NFCU

I'm considering filing ch7 bankruptcy just myself not my wife. Would they take adverse action on her card and our checking?

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Any deposit account that your name is on will be used as cross collateral for your credit card.  So your best bet is to remove your name from the joint account.  Like another posted indicated, I would recommend moving your direct deposit over to another bank or credit union until AFTER the discharge.  If they are being oncluded, you will no longer be able to get credit with NFCU again without paying them back everything that they loss in the bankruptcy.

Once the discharge is done, then you can start using your deposit accounts again without restriction.  However you will not be able to get any other credit products, and I do not think you will be allowed to be an AU on your wife's credit card with NFCU.  Do you all have any automobiles financed together with NFCU?  If yes, you want to speak with our attorney about that b/c that property could be tied up in the cross collateral agreement you sign.

[Anonymous]

Hmmm.

Well we've transferred everything out. No auto loans with NFCU. Honestly i didn't want to include them but even if i didn't wouldn't they close my account once they see i filed anyway?

[Tazman81]

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@Anonymous wrote:
Hmmm.

Well we've transferred everything out. No auto loans with NFCU. Honestly i didn't want to include them but even if i didn't wouldn't they close my account once they see i filed anyway?

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As long as NFCU is not included in your bankruptcy, then they will not mess with yoru accounts.  But unfortunately it's not that easy.  The only way you can not include a creditor in your bankruptcy is if you don't owe them any money.  I don't think you will be permitted to leave them out of your bankruptcy as it would be like you picking and chosing which creditors you want to pay.

Now I will say, something that I learned too late was that if an account has a 0 balance, then they don't have to be included.  Had I known that before I did my bankruptcy, I would have actually paid off my AMEX card (had some very miniscual amount).  Years later, I did get back in with AMEX because the amount was very small, but had I known that, then I would have just brought that account to a 0 balance so it would have been one less account to include in bankruptcy.

[Anonymous]

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@Anonymous wrote:
No auto loans with NFCU. Honestly i didn't want to include them but even if i didn't wouldn't they close my account once they see i filed anyway?

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Once you file for bankruptcy, there is a 99.5% chance your credit cards will be immediately closed, whether or not they are included in bankruptcy. As stated previously, you may be able to "not include" them if they are at $0 balance(s). 

That's credit cards.

For checking/savings/CD accounts, these accounts will remain open. You may open other checking/savings accounts post-discharge. This is the policy that has changed -- it used to be more restrictve. 

As discussed previously, if NFCU takes a loss, you will not be able to obtain credit from them until the loss is re-paid. That credit includes secured loans and secured credit cards. This policy has not changed in the past 10 years.