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Navy Federal and Bankruptcy

CButta_Baby
Valued Member

Navy Federal and Bankruptcy

I just filed for BK today and my hearing is set for June 20th.  Yay!!  I am burning Navy Federal in the process. Smiley Sad  I wanted to know if anyone out there has personally burned NFCU and got back in their good graces after paying them off.  I want to know if this will be the end all for my relationship with them or if they'll give me a second chance to prove my love for them.  

 

Thanks for any and all input!!  You guys rock! Smiley Happy

Message 1 of 11
10 REPLIES 10
iamwickedbeauty
Established Member

Re: Navy Federal and Bankruptcy

Hi there - it is my understanding that NFCU is BK friendly to those who repay balances owed at the time of BK.  However, I am uncertain of a timeframe. Good luck to you on your rebuild Smiley Happy

Filed BK7: 3/24/16 Discharged: 6/27/16
Staring Scores: May 2016 -
TU - 491. EX - 520, EQ - 512 - Goal Scores: 750
Current Scores: MyFico 8 - May 2017 TU - 648, EX - 636, EQ - 658 In the wallet: Credit One CC ($600 CL) NFCU Visa CC ($8200 CL) NFCU CLOC ($7500) Amazon ($800 CL) Walmart CC ($700 CL) there are more but I'm too lazy to update
Message 2 of 11
CButta_Baby
Valued Member

Re: Navy Federal and Bankruptcy

Thank you so much for your input Wicked!
Message 3 of 11
leonel9
Frequent Contributor

Re: Navy Federal and Bankruptcy

The timeframe shouldn't make a difference -- either the loss is paid or unpaid. Once paid, the standard underwriting guidelines apply, which includge (generally) being unable to get an unsecured credit card within a year of discharge. 

Message 4 of 11
CButta_Baby
Valued Member

Re: Navy Federal and Bankruptcy

Thanks leonel. Should I wait until after my 341 meeting or after discharge before paying NFCU back?
Message 5 of 11
MiaM
Frequent Contributor

Re: Navy Federal and Bankruptcy

do you know if PenFed is bk friendly too? I'm in Ch 13 and i burned them in my bk...about $22k

Message 6 of 11
CButta_Baby
Valued Member

Re: Navy Federal and Bankruptcy

I'm not sure if PenFed is BK friendly. Hopefully someone on the boards can answer your question. I'm burning them as well. I was hoping to get in good with NFCU and wait to try and get back in with PenFed.
Message 7 of 11
Sebastian503
Established Contributor

Re: Navy Federal and Bankruptcy


CButta_Baby wrote:
Thanks leonel. Should I wait until after my 341 meeting or after discharge before paying NFCU back?

 

ABSOLUTELY wait until AFTER the BK is discharged.

 

Secondly, consult with your attorney as to when (how much time has past post BK) it would be okay to "pay" Navy.

 

Remember, you are in bankruptcy.   You shouldn't appear to become flush with  Cash all of a sudden and out of no where.

 

Appearances matter.

.

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 8 of 11
liv22
Contributor

Re: Navy Federal and Bankruptcy

I am considering whether I want to pay NFCU to get back in with them or not. I burned them in a sense that there was unpaid overdraft fees under $500 discharged, however, I don't agree with the overdraft fees. The overdraft fees resulted from a 'temp. credit reversal' from a debit dispute. They claim they sent a letter requesting more information, I did not receive that letter. I was out of state for a few months caring for my sick father and moved when I returned home. When I got home my account was closed with a $0.00 balance. It was not negative.  My regular checking is with Chase anyway so when I saw NFCU closed my account I was over it all. When i received a copy of the bankruptcy forms, I saw Navy Federal listed. I had just read how BK friendly they are and can't help but sulk.  I am 112 days post discharge, have no collections, the late pays are on student loans that are pending removal (most recent reported 3 yrs ago), and my FICO 8 score is now 679 (was 574 on 2/1/17). Wish the banks used the FICO 9 scores (currently 739). After 3 car and CC payments appear on my credit file, I believe I could have received an approval. I did send them a letter explaining the circumstances and waiting to hear back. I am hopeful but doubtful that they see my situation and realize how quickly they could make the $476 back by simply extending credit to me in the future...but again, doubtful. Will update if my letter worked. 

Message 9 of 11
Scupra
Super Contributor

Re: Navy Federal and Bankruptcy


@liv22 wrote:
I am considering whether I want to pay NFCU to get back in with them or not. I burned them in a sense that there was unpaid overdraft fees under $500 discharged, however, I don't agree with the overdraft fees. The overdraft fees resulted from a 'temp. credit reversal' from a debit dispute. They claim they sent a letter requesting more information, I did not receive that letter. I was out of state for a few months caring for my sick father and moved when I returned home. When I got home my account was closed with a $0.00 balance. It was not negative.  My regular checking is with Chase anyway so when I saw NFCU closed my account I was over it all. When i received a copy of the bankruptcy forms, I saw Navy Federal listed. I had just read how BK friendly they are and can't help but sulk.  I am 112 days post discharge, have no collections, the late pays are on student loans that are pending removal (most recent reported 3 yrs ago), and my FICO 8 score is now 679 (was 574 on 2/1/17). Wish the banks used the FICO 9 scores (currently 739). After 3 car and CC payments appear on my credit file, I believe I could have received an approval. I did send them a letter explaining the circumstances and waiting to hear back. I am hopeful but doubtful that they see my situation and realize how quickly they could make the $476 back by simply extending credit to me in the future...but again, doubtful. Will update if my letter worked. 

NFCU is very strict on not extending unsecured credit to someone who has caused a loss.

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
759 EQ FICO 03/2021
754 TU FICO 03/2021
743 EX FICO 03/2021
$29k NFCU Platinum | $30k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE | AMEX Gold
Message 10 of 11
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