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

[Pizza]

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.

Common sense would tell me as such, but there's a lot about filing BK that defies common sense (such as Wells Fargo freezing everybody's).

She just switched to this account recently and without knowing the risks.

[Pizza]

FOLLOWING UP:

Atty said that this particular credit union does not do that, and that if it did he would promptly call the court and they would have the account unfrozen immediately.

[kjrmom911]

When I filed almost 2 years ago, my credit union only held my car loan, which I was intending to pay outside of the bankruptcy. Just in case I opened a new account with a different credit union and sent my direct deposit there. I had no problems with either credit union, but found that I actually prefer the new credit union. I keep enough money in my old one to make my car payment each month, but once I am done paying that I will most likely close my account with them as I have heard they are not bk friending (as in giving loans) afterwards. Which is too bad as I have financed and purchased 4 cars with them and have never not paid my car loan back.

[baker21]

I've been concerned about our credit union as well. We only have a checking and savings with them. No credit cards, auto loans, or mortgages. Should I be concerned and change our direct deposits before we file?

We also have a checking and savings with Ally that we have a few auto-pays come out of. I'm just not sure if our CU would freeze the accounts if we don't owe them anything. We don't have any loans or cc's with Ally either.

[LadyInTheRed]

I've been concerned about our credit union as well. We only have a checking and savings with them. No credit cards, auto loans, or mortgages. Should I be concerned and change our direct deposits before we file?

We also have a checking and savings with Ally that we have a few auto-pays come out of. I'm just not sure if our CU would freeze the accounts if we don't owe them anything. We don't have any loans or cc's with Ally either.

Wells Fargo and another related bank whose name I can't think of right now are the only banks I have ever heard of freezing cash accounts when the debtor does not owe the bank money. I wouldn't worry about it.

[Pizza]

I think the other one is Union bank.