Question about paying bills AFTER filing...

[JEM]

I know most have said that your online access is restricted for awhile.

Curious about making payments by phone. Will that be allowed?

We have our auto at our CU, we will be keeping the auto (we are current). If they restrict our online access to the auto, I'm assuming that means they will also be restricting the bank account online since they are all on the same log in page. (Does that make sense?)

Will we be allowed go TO the CU and make auto payments (in person)?

Do they give your online access back at some point?

[daylate]

Not to hijack the thread but when responding could those who know define who restricts online access? The financial institution? Thanks

[free2breathe]

The financial institution restricts access, and it's normal for that to happen. JEM, contact the CU and ask them how they would like you to pay your payments. They can't contact you once you file, but it's absolutely fine for you to contact them to see how they will accept payments. Also, due to CUs cross collaterizing most of the time, your other account may be more than restricted. They may actually be able to freeze it. Something to look into.

[JEM]

The financial institution restricts access, and it's normal for that to happen. JEM, contact the CU and ask them how they would like you to pay your payments. They can't contact you once you file, but it's absolutely fine for you to contact them to see how they will accept payments. Also, due to CUs cross collaterizing most of the time, your other account may be more than restricted. They may actually be able to freeze it. Something to look into.

We aren't getting rid of any debt with them. We have the car and a small LOC ($200) with them, which we didn't have a balance on. The car is current and will remain so. So I'm not sure why they'd freeze accounts, they won't be out any money as a result of our filing. I hope this doesn't happen, but now I'm worried.

[free2breathe]

Search the forum for stories from others about this. It seems that Credit Unions are very aggressive about it when you file. I'll try to find some threads for you.

http://www.bkforum.com/showthread.php?65265-Credit-Unions-and-freezing-accounts

http://www.bkforum.com/showthread.ph...ling-Chapter-7...

http://www.bkforum.com/showthread.php?47961-Can-my-Credit-Union-freeze-our-account

[daylate]

free2breathe- Thanks for including this added info

[JEM]

Well then, I guess we're screwed. We are signing papers tomorrow. No time to open a new account and dh's direct deposit paycheck goes in on Friday and VA disability on Tues. If they freeze it we wont have any money for bills. Our attorney said he's dealt with all the major CU's in town and hasn't.had any problems, but???

[free2breathe]

Hopefully you can trust your attorney. Hoping and praying for the best for you!

They probably won't get the notice for a few days. Maybe you can pull money out as soon as his check is deposited and go from there. Go to another bank, open an account, get hubby's direct deposit switched etc. I would hate to see them freeze your accounts for sure. From what I've read on here, you should be able to find cross-collateralization clauses in your loan paperwork if the CU exercises that right.

[JEM]

In reading the threads linked, it seems they have to release the money pretty timely.

I don't think opening a new account would help. Dh's direct deposit takes 2 pay cycles to switch. They don't do paper checks. And the VA, who knows how long it'll take them. We have things that come out on auto withdrawal. What happens to them?

[tcreegan]

Hi all, Hi Jem,

Keep in contact with your CU, let them know what is happening and ask them what they will do. Since your attorney didn't seem to worry about it, odds are you will be OK.

Good luck w/ your filing!

Tom in Colo

[ValleYum]

And the VA, who knows how long it'll take them. We have things that come out on auto withdrawal. What happens to them?

The VA took less than a month for us - more like a week or 2. A lot depends on when in the cycle you call. It was all done by phone. If you need the numbers, etc., just send me a PM - I have them and the exact process saved in a text document.

I stopped all my auto pays. I wanted to be in control of the $$ for a while and I wasn't sure what would happen with regard to the new direct deposits so I did it for my own peace of mind, too. Adds another step back to paying bills though.

Hang in there, Miss JEM!!!

[OhioFiler]

The financial institution restricts access, and it's normal for that to happen. JEM, contact the CU and ask them how they would like you to pay your payments. They can't contact you once you file, but it's absolutely fine for you to contact them to see how they will accept payments. Also, due to CUs cross collaterizing most of the time, your other account may be more than restricted. They may actually be able to freeze it. Something to look into.

If they freeze your funds in your checking account as an offset to your loan after you file bankruptcy they will be in violation of the automatic stay provided by law.

[JEM]

Didn't sleep well at all last night thinking about this. Actually made myself sick.

One thought that came to mind, asking the attorney to hold off on filing till Friday and opening a new account. Few problems with that idea this late in the game though. 1) No time to get direct deposit changed before Friday (and Tues) for the VA. 2) Won't the new account have to go on the schedules, therefore needing to be redone? 3) We probably won't be able to open a new account because of the bad credit.

To those who said talk with the CU, before or right after filing?

[AngelinaCat]

Talk to the CU--the bankruptcy department both before and after you file. Since a CU is a community of members, and for one member to declare bankruptcy, that member is considered to have let the community down, so your accounts will be frozen or closed. At least that is what happened with us. 'Hub spent a couple of days on the phone with the BK department of our CU and got our accounts unfrozen. We had a car loan which was current, and we kept it so. 'Hub had also been a member of this CU for more than 40 years, and wanted to remain with them. It took about ten days for the accounts to be unfrozen, and the CU people were very nice. They also reversed several NSF fees that had accrued from checks that bounced while the accounts were frozen.

I should also add that our CU is in another state, so that is why we had to use the telephone.

Good luck!

[JEM]

The VA took less than a month for us - more like a week or 2. A lot depends on when in the cycle you call. It was all done by phone. If you need the numbers, etc., just send me a PM - I have them and the exact process saved in a text document.

I stopped all my auto pays. I wanted to be in control of the $$ for a while and I wasn't sure what would happen with regard to the new direct deposits so I did it for my own peace of mind, too. Adds another step back to paying bills though.

Hang in there, Miss JEM!!!

I tried to send a PM and kept getting an error msg. Could you send it to me?