Navy Federal Credit Union

[Anonymous]

Hello, I had a quick question. I am going through chapter 7 right now. My credits meeting is going to be in the middle of March.

can I apply to get a checking account with navy federal credit union right now? Or should I wait until discharge letter. I never had an account with them before.

also, if I have cross-calletral with a credit union with my car and credit card. If I redeem the vehicle, will it eliminate the cross collateral?

thank you

[FireMedic1]

Are you saying you already belong to another credit union?

[Azuieldrago]

I have NFCU and am currently using them and I included them in my BK. As long as you meet the requirements, I don't see an issue. Since you didn't burn them in your BK, you should be able to get a checking, savings and a secured card right away, if you want. All the other lending options you won't be allowed to use until 1 yr after discharge.

As for your other question, from what I read, if you re-affirm your car they can attach the credit card due to the cross collateralization clause. Other ones have let a card go if you did the vehicle. Now, that is just what I've read. No experience there. How much is the vehicle worth vs what is owed? If you are far enough upside down on it, best to let them both go. 

[sccredit]

I had my truck financed with Navy Federal when I filed.  Their original stance was if I were to reaffirm the auto loan all other debt would have to be included in the reaffirmation becuase of cross-collateral.  I rejected and quit paying.  Some time later they came back and offered reaffirmation on the vehicle only but by then I had another car and just rejected it altogether.  So to answer your question - I guess it depends on the CU and who you're dealing with there.  I'd plan for them trying to enforce the cross-collateralization clause and be pleasantly surprised if they don't.  

[msml_2020]

We filed in July of last year with a car that was financed with our CU.  We also each had CC's and owed about $4k total.  We offered to re-affirm the car, the CU wanted to tack on the CC's since it was cross-collateralized.  It would have put the car WAY underwater.  Our lawyer told us to let the car go, and that it's very rare for CU's to not enforce the cross-collateralization.  Going forward, I have no plans to ever finance a car with a CU if I have a CC through them.  We don't anticipate having to file BK again, but we weren't counting on filing at this point in our lives, either.  Medical issues were the culprit in our case, and we aren't getting any younger.  Very hesitant to put a bunch of eggs in one basket.

[Scupra]

I opened my NFCU checking account pre-discharge. They didn't have an issue with it.

[Guyatthebeach]

Newchapter,

You can apply for membership and open a checking and savings account prior to discharge.  Don't open a credit card or get a loan with Navy Federal until after your discharge.  

Guyatthebeach