overdraft protection 1000 paydown - pref. xfer?

[Tom_Mi]

Hi all,
I'm filing next week.

My CU checking account has overdraft protection of 1000. It's been maxed for a year.

Since it's sort of a loan, If I knock this out with some extra cash prior to filing is it a preferential transfer?

[AngelinaCatHub]

Yes it is. The CU will also lock your account. I have the same and I reaffirmed my car loan as well as the OD protection loan. (mine is maxed out now). I'm waiteing on my CPA to do something with IRS. As soon as I got the discharge I get hit with IRS levies letters. 'Hub

[Tom_Mi]

Lock my checking account???? I have to maintain a bank account...my salary goes in there via direct deposit.

can I reaffirm the overdraft?

[AngelinaCatHub]

Yes on both issues. They actually dishonored several checks in float. They did give us our NSF fees back after reaffirmation. You may wish to talk to them before you file and get the paperwork up at hand. Our CU is out of state but they were kind enough to reopen the account upon my word I was reaffirming. I couldn't even go online to look at the account until I contacted the right person. 'Hub

[BROKENN]

No, seriously guys... do they lock regular bank accounts?
Do they lock if no loans are at that bank?
If they do lock, when do they open?

I have four accounts and they have my living money in them!!!

[justbroke]

No, seriously guys... do they lock regular bank accounts?
Do they lock if no loans are at that bank?
If they do lock, when do they open?

I have four accounts and they have my living money in them!!!

CU's are notorious for locking the accounts because they consider it a Breach of the "Shareholder" Agreement. (e.g. you've broken the trust.) Credit Union members are responsible to the other Credit Union members. This is much different than a regular bank.

Trust me... if you can... open a new checking account NOW at a neutral Bank. Move your Direct Deposit! I had issues with my DD being at a Bank that I had a line of credit (LOC) with. They closed my LOC, then charged my primary checking account, then froze that account!!! That was where my DD went!!!!! I had to scramble to move my accounts! And this was a "normal" bank! (However, they didn't freeze my other 3 accounts at that Bank.)

Bankruptcy attorneys will usually recommend that before you file bankruptcy, and before you even tell the credit union that you plan to file bankruptcy, that you withdraw your money from the credit union account and deposit it in a bank to which you don’t owe any money

From Bankruptcy Law Network http://www.************************/...le-bankruptcy/

[BROKENN]

Good article and the last bit on not owing money to them is the piece I needed. I do not have any credit with them. **pheeww**

BTW, congrats jb on your 9/9!