Do I need a new bank account?

[cfgdag]

I currently have a checking and savings at Desert Schools Federal Credit Union (in Arizona). I also have 3 secured debts I am reaffirming with them (a second mortgage and 2 vehicles). However, I have 2 debts with them that will be settled with my bk (a credit card and line of credit, both totaling approx 13K). I am wondering if I should get a second checking acct at a small local bank just in case my account is closed. I guess I am just wondering if the credit union would do that being that I am reaffirming my biggest debts to them (totaling almost 75K)? Or would they automatically close it due to the debts that will be wiped out? My mother in law suggested opening another account right now, before I file, just in case. My atty said it wouldn't be necessary. But I don't want to be caught without any bank? Also, would my "new" bank close my acct when I file for bk, even if I don't owe them any money?

[OhioFiler]

I'd get my cash out of that CU before the sun sets on Michael Jackson's memorial service.

[LuciluS]

I'd get my cash out of that CU before the sun sets on Michael Jackson's memorial service.

I Agree!

Most all Credit Unions have a Cross Collateral Clause included in all, some, or One Document of a Loan and/or Checking/Savings Account.

[cfgdag]

Okay...so I will set up another bank account and start to use it more than the credit union. I guess my next question is, once I have a new bank set up...will they get any sort of information that I filed for bk? Is there anyway they can find out that information after my acct is established with them?

[aces67]

Okay...so I will set up another bank account and start to use it more than the credit union. I guess my next question is, once I have a new bank set up...will they get any sort of information that I filed for bk? Is there anyway they can find out that information after my acct is established with them?

I'm not sure about that. Some banks use Chexsystems and you may show up in there.

I'd definitely get a new account ASAP!

[OhioFiler]

Okay...so I will set up another bank account and start to use it more than the credit union. I guess my next question is, once I have a new bank set up...will they get any sort of information that I filed for bk? Is there anyway they can find out that information after my acct is established with them?

Your new bank won't care so long as you don't write bad checks against your account with them. What you are planning to do is very common in the BK planning process.