Do I need to move funds out of Credit Union????

[Fallonedward]

I have no credit cards with this credit union nor any loans and nothing will be listed with this credit union in my filing. Do I need to shut this account down???

Dam I think I will have a nervous breakdown before Thursday. I'm now worried about everything.

[kartoons19]

Since you don't owe them any money you should be fine. I opened up a new CU account prior to filing because I owed money at another CU and my new CU account has been fine. Hang in there, it gets better.

[AngelinaCat]

Because it is a CU, even though you have no active accounts in it right now, you still may get a 'nastygram' about how your bankruptcy is 'letting down the rest of your community members (of the CU) that are depending on you' for the financial health of the CU.

We had one of those, even though 'Hub had talked to the CU, with which he had done business for nearly 40 years, BEFORE we filed. Then 'Hub spent a couple of days on the telephone with the BK department, and got everything worked out to our satisfaction.

[IBroke]

Because it is a CU, even though you have no active accounts in it right now, you still may get a 'nastygram' about how your bankruptcy is 'letting down the rest of your community members (of the CU) that are depending on you' for the financial health of the CU.

I had no open loans or any other obligations with my CU when I filed. Maybe I'm just too dumb to understand, but I don't get why I should consider my filing "letting down the rest of the CU-members".

Unless they run my credit, they won't even know about my filing....

[tcreegan]

Hi all,

I loved 'Hub when he referred to credit unions as the "ankle-biters" of the financial world...

You open accounts at banks, but you join credit unions. Different set of rules....

Tom in Colo

[AngelinaCat]

I had no open loans or any other obligations with my CU when I filed. Maybe I'm just too dumb to understand, but I don't get why I should consider my filing "letting down the rest of the CU-members".

Unless they run my credit, they won't even know about my filing....

It goes back to the 'old days' of a community credit union. Several folks in the community would come together and decide to form a 'Credit Union' and pool their finances, and invite other people to join and add their finances. The result was a pool of money that was, at that time, used to lend money to only other members.

A Credit Union is not a bank. It is a not for profit institution, owned by share holders only. You cannot belong to one unless you own at least one share of stock. Though 'Hub has been a member for almost 40 years of his CU, I could not create my Medical Health Savings Account with it, until I joined. Thus I have a token $5.00 Savings Account. That is our CU.

Rules have changed and now Credit Unions offers membership to others outside the realm of their ownership, usually by a single company organization, yet independent of them. Such as "IBM Credit Union", owned only by IBM employees, yet IBM did not own the CU.

Now the Public is invited, and though they operate similar to banks, the rules are different. The reason CU's close accounts big time, is to protect the assets of the members and CU's are generally small, and do not have the loss liability as big banks might.

[AngelinaCat]

I had no open loans or any other obligations with my CU when I filed. Maybe I'm just too dumb to understand, but I don't get why I should consider my filing "letting down the rest of the CU-members".

Unless they run my credit, they won't even know about my filing....

It goes back to the 'old days' of a Community Credit Union.

Several folks in the community would come together and decide to form a 'Credit Union' and pool their finances, and invite other people to join and add their finances. The result was a pool of money that was at that time used to lend money to only other members. A Credit Union is not a bank. It is a not for profit institution, owned by share holders only. You cannot belong to one unless you own at least one share of stock.

Rules have changed and now Credit Unions offer ownership to others outside the realm of their ownership, usually by a single company organization, yet independent of them. Such as "IBM Credit Union" Owned only by IBM employees, yet IBM did not own the CU.