Visa Debit Cards / Credit Union Accounts

[PVS]

For the past 6 months I've paid everything with my credit union debit visa card. Will this be card be cancelled post bk? I plan to surrender two autos back to them. I have not filed or even met with an attorney yet.
Are visa debit cards available post BK? Or should I open a new checking account with a different Credit Union before I file and my credit goes south? Currently no 30 day lates on anything, nor have I ever missed a payment. My thinking is perhaps I should bank with someone post BK who I haven't screwed.

[BBW]

I wouldn't take any chances. I am also going to be returning a car to a credit union that I will be discharging. There is no way I will take a chance to deposit money there.
Go open a new bank account. As long as you haven't bounced many checks you should be fine. You don't need credit to get a visa debit card. I got my first at age 16 well before I had credit.

[music12]

bbw is right. not only should you open an account at a bank (other than wells fargo) that you don't have any other accounts with, you should remove all your money from the CU account or they might freeze/take it when you file.

[ApresMoi]

I have the same question. I started using an old credit union account, rather than my regular checking account, as my creditors had all previously been paid from the latter, and had routing numbers, etc.. I don't have any loans through any of these institutions. The credit union had given me a debit card associated with the checking accounty (ages ago), and I never used it. Until now.

When I file, I assume the credit union will be notified. What happens to the debit card? I used it at the store today, and selected 'credit', and it went through fine. I don't think I can 'charge' a thing unless money is in my account to cover it, so it's hardly a credit transaction, seems to me.

So two questions:

Will they yank the debit card when they are notified I have filed (even though I don't owe them anything)?

Should I still be concerned about any balance in that account at time of filing? I have only heard of Wells Fargo and Union Bank freezing accounts routinely under those circumstances. Since I don't have any loans with them, and so am not defaulting on THEM, why would they?

Thank you for suggestions, informed opinions, et al.

W

For the past 6 months I've paid everything with my credit union debit visa card. Will this be card be cancelled post bk? I plan to surrender two autos back to them. I have not filed or even met with an attorney yet.
Are visa debit cards available post BK? Or should I open a new checking account with a different Credit Union before I file and my credit goes south? Currently no 30 day lates on anything, nor have I ever missed a payment. My thinking is perhaps I should bank with someone post BK who I haven't screwed.

[MC9199]

ApresMoi: You should be able to keep the Visa debit card, although some credit unions can be very strict about bankruptcies. Maybe someone who uses a credit union can weigh in. Otherwise the only circumstance I can think where it would be canceled would be if you were in the hole with an overdraft line, or if you had a true credit card with the same institution.

As far as balance in that account at time of filing, as long as the balance can be explained as representing funds used to pay normal living expenses, you're fine.

[music12]

i don't think your debit card is at risk. my debit card worked just fine at the same bank that's still holding on to frozen funds...

[ApresMoi]

Thanks! You are both spot on.

I got so fed up I decided to go right to the source -- just come right and ask the credit union what they are going to do. Their answer? "NOTHING...since you don't have any loans outstanding." They were VERY supportive btw, and also referred me to their outside legal counsel who will talk to me for free (and refer me to BK attorneys if I wish). I will be calling the latter tomorrow to ask them about a 'notice of exempt funds' letter and whether they CU will honor it in the event a collector tries to seize. I will report back once I find out.

I have been gnashing my teeth about this issue all day...I just can't rest until I have a workable plan to keep what little I have protected until I can get around to filing.

I did some more research on WalMart's prepaid card, and I'm just not going that route. When you start reading the fine print....plus, you have to register and give them a ton of personal information, just as if you were opening a checking account (at least according to one website I read). I also am not convinced the card's non-seizable either...and there are fees, plenty of fees, that the credit union does not charge. Not to mention the WalMart 'experience'. :-)

So if I can get some assurance from the credit union that they will honor my "notice of exempt funds" letter, then that's going to have to be good enough. I think it would be really really rough/unpleasant to go all cash.

Currently have several unemployment checks that I have not deposited anywhere, while trying to figure out what is safe. I know it's a long shot that anyone would get to my funds only 90 days out, but you know what? I couldn't sleep at night as long as there was even a 1% risk. Plus at least one creditor now has people from a law firm calling here (he doesn't say he's an attorney, just that he's a collector calling from a law firm). The only effect that had was to make me move a little faster.

i don't think your debit card is at risk. my debit card worked just fine at the same bank that's still holding on to frozen funds...

[BobMango]

Thanks! You are both spot on.

I got so fed up I decided to go right to the source -- just come right and ask the credit union what they are going to do. Their answer? "NOTHING...since you don't have any loans outstanding." They were VERY supportive btw, and also referred me to their outside legal counsel who will talk to me for free (and refer me to BK attorneys if I wish). I will be calling the latter tomorrow to ask them about a 'notice of exempt funds' letter and whether they CU will honor it in the event a collector tries to seize. I will report back once I find out.

I have been gnashing my teeth about this issue all day...I just can't rest until I have a workable plan to keep what little I have protected until I can get around to filing.

I did some more research on WalMart's prepaid card, and I'm just not going that route. When you start reading the fine print....plus, you have to register and give them a ton of personal information, just as if you were opening a checking account (at least according to one website I read). I also am not convinced the card's non-seizable either...and there are fees, plenty of fees, that the credit union does not charge. Not to mention the WalMart 'experience'. :-)

So if I can get some assurance from the credit union that they will honor my "notice of exempt funds" letter, then that's going to have to be good enough. I think it would be really really rough/unpleasant to go all cash.

Currently have several unemployment checks that I have not deposited anywhere, while trying to figure out what is safe. I know it's a long shot that anyone would get to my funds only 90 days out, but you know what? I couldn't sleep at night as long as there was even a 1% risk. Plus at least one creditor now has people from a law firm calling here (he doesn't say he's an attorney, just that he's a collector calling from a law firm). The only effect that had was to make me move a little faster.

I had two credit unions prior to filing. One has my truck loan, the other all of my banking. My experience with the one I do all my banking with has not changed a bit. I still use my visa debit card, credit or pin, and have direct deposit. No problems.

The other credit union was very easy to work with on my truck loan, they were willing to advance my pay date and drop the payment by more than $200 a month. I had to sign a reaffirmation but I have lots of equity in the truck so it was not a concern.

[MC9199]

I got so fed up I decided to go right to the source -- just come right and ask the credit union what they are going to do. Their answer? "NOTHING...since you don't have any loans outstanding." They were VERY supportive btw, and also referred me to their outside legal counsel who will talk to me for free (and refer me to BK attorneys if I wish).

That's pretty awesome...it shows that it's worthwhile to be up front with them about finances. Too bad they all aren't like that.

[5cents]

I had several accounts with a CU in Florida. After they received notice of our BK we received a "get out of Dodge letter." Basically all access to my account would be shut off ten days after the letter was written! And sure enough share-draft, web access, bill pay and check card was frozen. Luckily I had withdrawn everything just before the deadline. BtW, most attorneys will tell you that most CU's are the most difficult to deal with post BK.

[ApresMoi]

Did you have any loans with them that you were defaulting on? Or know of other reasons they would do this?

I had several accounts with a CU in Florida. After they received notice of our BK we received a "get out of Dodge letter." Basically all access to my account would be shut off ten days after the letter was written! And sure enough share-draft, web access, bill pay and check card was frozen. Luckily I had withdrawn everything just before the deadline. BtW, most attorneys will tell you that most CU's are the most difficult to deal with post BK.

[ApresMoi]

That's pretty awesome...it shows that it's worthwhile to be up front with them about finances. Too bad they all aren't like that.

It's a local, community credit union, which I think makes all the difference in the world. They actually know people who bank with them. That said, I don't owe them anything either, so they would not be hurt by my BK. I wonder if they would give me a car loan post BK? :-)

[backtoschool]

Most credit unions will not cancel your debit card if you are not bk'ing any loans with them. The OP was bk'ing a car, so I think in that situation, the visa debit card would be at risk, and the OP should go open another account.

[AngelinaCat]

I had several accounts with a CU in Florida. After they received notice of our BK we received a "get out of Dodge letter." Basically all access to my account would be shut off ten days after the letter was written! And sure enough share-draft, web access, bill pay and check card was frozen. Luckily I had withdrawn everything just before the deadline. BtW, most attorneys will tell you that most CU's are the most difficult to deal with post BK.

We got one of those also. It's a standard form. But 'Hub called and talked with their BK department, and everything was worked out. Here is a pertinent thread on the subject. My post, #2, gives the details of our experience:

http://www.bkforum.com/showthread.php?t=50059&highlight=credit+union

Good luck to you!