Navy Federal Credit Union / AP?

[SJF75]

Wondering if anyone has had experience with NFCU filling an AP when they filed a Ch7?

We are getting ready to file Ch7, in July/August but I am concerned because I know how harsh they can be. We have about $80K of unsecured debt with them. We don't have any car loans or home loans with them. Its all credit card, personal loan, and an overdraft protection account. As of today...we are current on all payments and our last charges were in February. We don't have any cash advances within the last year but we do have some rather large purchases (the largest was $3000) a few months ago. At that time I had not considered BK and to be honest I am still on the fence. We really need to file, our debt load is too much for us to handle but the entire process is scarring me.

Should we wait longer? Or should we just prepare to deal with the AP if/when it comes?

If they do file an AP will it be for the entire balance owed or just charges made more recently?

Does anyone have any experience with an AP being filed or NFCU showing up to their 341?

Thank so much for any input.

[justbroke]

NFCU is not going to file an adversary proceeding (AP) over debt that you have with them that you accrued over time. In fact, no creditor is going to do that. They would need to prove actual fraud if they were willing to file an AP.

You're current, a long time customer, and haven't otherwise done anything to make them think you were running up debt on the eve of bankruptcy. It's a no brainer; they are not going to do anything but file a claim (or several).

If NFCU does show up at a 341 Meeting, it's usually related to a vehicle (they want to inspect the vehicle and ask if the member is going to reaffirm the debt).

[leonel9]

Did you falsify your income on the credit applications?

[justbroke]

Did you falsify your income on the credit applications?

Who? Me or the original poster? My income is significantly over 6 digits and NFCU did have me provide proof of income when one card was increased above $20K.

[leonel9]

My apologies - meant the OP. There's a problem in California with some members inflating their income, racking up a ton of debt, then being unable to pay the bills back. If the OP listed greatly inflated income and it is later discovered that this occurred, the OP may have a concern for an AP.

Otherwise, if there was no fraud in the application, payment have been made by the OP in an attempt to pay the debt, there should be little concern of an AP, if the debt was initially incurred more than 6-12 months from filing.

SJF75: How long ago was the debt initially incurred?

[SJF75]

leonel9 - Sorry I have been off the board for a few weeks
To answer your questions:

1)No we did not inflate our income. It may have been off slightly (like 1-2 hundred in either direction) but no it was never falsified. We are still making payments...all though its killing us. The 80K in debt is spread out over three credit cards and two personal loans.

2) Some of the debt was incurred years (over 10) ago. The last personal/consolodation loan was incurred over a year ago. Like I stated above the largest purchase was in January for $3000 on a credit card. I am trying VERY hard to not use the cards, however once I make the payments I don't really have much left to cover day to day expenses. Right now IF I use them it is strictly for gas or groceries.

[leonel9]

In that case I absolutely agree with justbroke. If you properly stated your income, then you should not have to worry about an AP.

Once you make the decision to file, you generally should stop paying creditors that will be discharged. You should re-evaluate if it makes sense to pay the full amounts when you cannot afford to. If you feel that you must make some payment due to the recency of the $3,000 purchase, consider setting up a payment plan with collections that is less than the minimum. Or just make no payments and allow sufficient time to elapse between purchase and filing date.

[nohoneymoney]

If you are thinking about filing for BK7 in a few months, you should start interviewing lawyers now. The initial consultation is usually free.

[RetiredArmy]

Wondering if anyone has had experience with NFCU filling an AP when they filed a Ch7?

We are getting ready to file Ch7, in July/August but I am concerned because I know how harsh they can be. We have about $80K of unsecured debt with them. We don't have any car loans or home loans with them. Its all credit card, personal loan, and an overdraft protection account. As of today...we are current on all payments and our last charges were in February. We don't have any cash advances within the last year but we do have some rather large purchases (the largest was $3000) a few months ago. At that time I had not considered BK and to be honest I am still on the fence. We really need to file, our debt load is too much for us to handle but the entire process is scarring me.

Should we wait longer? Or should we just prepare to deal with the AP if/when it comes?

If they do file an AP will it be for the entire balance owed or just charges made more recently?

Does anyone have any experience with an AP being filed or NFCU showing up to their 341?

Thank so much for any input.

I remember our attorney telling us to CLOSE OUR USAA account before we filed for our Chapter 13. He had stated that certain Military Service Banks USAA, NAVY FED, Fort Campbell Credit Union, Fort Benning Credit Union, PenFed etc.. WILL SIEZE your Checking, Savings, Money Market, CD, IRA accounts. So with that in mind, we closed out our account with USAA prior to the Chapter 13 4 years ago and opened an account with Navy Fed.