Should I stop direct depositing my paycheck to my credit union? Have mortgage w them

[TXskyblue]

Will file a 7 next month unless something happens.

My checking account is with a credit union. I also have my mortgage with the credit union. I am current on my mortgage. Other than the mortgage, I owe my credit union nothing.

I've read here that if you have a credit card with a credit union, you shouldn't use the credit union for your checking account because they can grab your money.

Stupid question, but what about if it's just the mortgage like I have, which is current? I asked the paralegal today at my meeting and he said he would find out but then we talked about a dozen other issues and this question was forgotten.

What do you think?

[df04527]

i say move your money as they will likely lock your account down but see what others may say also.

[Floridagail]

My CU froze my debit card the day of my filing, I had a loan with them that was current at the time I filed.

I would take no chances and open a separate bank account where you owe noone, (Not with Wells fargo).

[Drazil65]

I agree, move to another bank or CU that you have no ties to. We set up new accounts about a month before hubby filed. We also had a portion of his pay deposited onto a money card. We spread it around a little so that if they did anything they would not freeze it all. You probably don't have to do that but at the time we wanted to be sure we had access to most of the money no matter what. Good Luck!

[btbeme]

Do not bank where you owe money if you plan to file a Ch 7. It is pretty much a dead guarantee that they will freeze your account, grab every cent, send out Tweets about how they are enjoying your money, and leave your account littered with zeros.

Switch banks. Like yesterday.

[TXskyblue]

Do not bank where you owe money if you plan to file a Ch 7. It is pretty much a dead guarantee that they will freeze your account, grab every cent, send out Tweets about how they are enjoying your money, and leave your account littered with zeros.

Switch banks. Like yesterday.

Just to be sure we're on the same page, I do not owe my CU any money other than a CURRENT and never late mortgage.

Is the advice still to get a new bank?

[df04527]

Yes

[btbeme]

Strongly recommend YES. At the very least, you can count on your account being frozen.

[TXskyblue]

Strongly recommend YES. At the very least, you can count on your account being frozen.

OK, I shut down my direct deposit and started a new direct deposit to a credit union I don't owe anything at all to.

Thanks all.

One follow-up question: What about AFTER the chapter 7 is discharged in a few months? I will, of course, not be signing a reaffirmation for my house but I will stay and pay.

Could I go back to using this credit union, the one who owns my mortgage, then? They are a fantastic CU I've used for about 15 years. Is this credit union off-limits forever, or forever as long as they own my mortgage?

[df04527]

Only way to know that would be to call them after you have filed and find out what their policy is. Our credit union shut us down and told us forever or until the "BK" flag was removed from their records.

[helpmeout]

Not only would I change bank accounts before filing closing the one you have with the CU, I would also pull any savings and move it to another bank.

[Pizza]

How do you go about unfreezing & how long does it take to unfreeze a CU account? My wife kept her checking account through Educational Employee's Credit Union (EECU). We have a (current + reaffirming) car loan with them. We just filed and, I guess, are expecting this to be a problem because of all the posts like this one.

[df04527]

Pizza, i am not sure there is a way. Can you get your money out like right now?

[btbeme]

If the bank isn't going to lose money - if the assets are secured and reaffirmed - there is no reason for the bank to seize anything. However, they will often freeze an account so it cannot be emptied or used until such time they can determine that their assets are safe. Getting it unfrozen can take time, and could take an attorney's help, but can sometimes be done by a talk with the bank manager.

[Pizza]

Yes, we pulled all but about $10 out. Moving forward, however, if it gets frozen on a whim by the CU, I'm wondering how to lift the freeze and how long it takes. Her employer has (mandatory) direct deposit and she doesn't want to change it again to avoid suspicions being raised at work that she's having financial problems.