Difficult Employer/Bankruptcy Situation

[cleo1357]

I'm looking at filing chapter 7 within the month. The problem is, I work for a credit union. I have 3 loans with the credit union, none of which I am reaffirming. I know my employer can't fire me for filing bankruptcy, but what do I do when my supervisor calls me in and asks me about it? He will surely do this. Do I tell him that I had to do it, and I don't want to talk about it, and leave it at that? This part has me more worried than the creditors meeting. Any advice would be appreciated.

[CindyLou]

First, welcome to the forum!!

Though your are correct, your employer cannot fire you just for filing BK, however, debts owed to an employer can be touchy. What has your attorney said about this situation? Have you scoured your employee handbook regarding debts owed to your employer and how deliquencies are handled?

I remember one member on this forum that worked for Target and had a target credit card...though the employer couldn't fire her for filing BK, they would fire her for including their acct...which was a condition of her employement and stated inthe employee handbook...or something of that sort. Her attorney had recommended that she make arrangements to reafirm that debt.

I'm not saying its not possible to include them and have no problems, but I would definetly explore all the angles before filing and consider the consequences.....

Credit unions had weird rules even for their customers, I would suspect that they have even weirder one for their employees borrowing money...
If you don't mind me asking, how much money are you talking about?

[cleo1357]

Debts owed to the credit union:

home equity loan $25,000
Credit Card $11,000
car loan $6700

No small change. I am giving up my home in the bankruptcy. The employee handbook simply states that employes are expected to handle their personal finances responsibly. There is nothing in particular about debts owed to the company. I went through EVERY PAGE of the handbook. I am prepared to find new employment, if necessary, after filing. I'm just trying to hold on to my job at the credit union as long as I can, and I want to stand up for what rights I have. My husband works, also, so we will be able to live off of what he makes until the BK is discharged. We will be moving OUT of Florida as soon as as we are discharged. We're moving to the midwest, where I can live on my parents farm and afford to go to to school. My parents are putting a trailer on the farm for me, which I will be paying for. Not the most glamarous of living arrangements, but it will enable me to go to college. Anyhow, I would like to hang on to the job for as long as I can so we can save up the money we need to move.

[busbis]

I don't think this will fly at all. Credit Union closes accounts if there has been a loss created even if the loss was due to a bk. I can't imagine that they would keep you employed after you don't reaffirm with them. There would probably be bonding issues and what do you think NCUA or the banking department would say when they came in to audit employee files and sees that there was an employee who filed for bk and a loss was created. I understand you are ok with leaving, why not just leave. What arguement could you possibly have for the credit union to keep you employed? The arguement would be completely different if you were reaffirming or didn't owe them any money. Personally, I don't think you stand a chance.

[sharksfan]

I don't think this will fly at all. Credit Union closes accounts if there has been a loss created even if the loss was due to a bk. I can't imagine that they would keep you employed after you don't reaffirm with them. There would probably be bonding issues and what do you think NCUA or the banking department would say when they came in to audit employee files and sees that there was an employee who filed for bk and a loss was created. I understand you are ok with leaving, why not just leave. What arguement could you possibly have for the credit union to keep you employed? The arguement would be completely different if you were reaffirming or didn't owe them any money. Personally, I don't think you stand a chance.

My wife works for a credit union (not the same one that is getting shafted on our $56K). Our attorney says that even if her employer found out, they cannot fire her for it. How would filing BK keep one from being bondable? It's not like anyone stole money. BK is perfectly legal.

[woohoogirl]

I don't think this will fly at all. Credit Union closes accounts if there has been a loss created even if the loss was due to a bk. I can't imagine that they would keep you employed after you don't reaffirm with them. There would probably be bonding issues and what do you think NCUA or the banking department would say when they came in to audit employee files and sees that there was an employee who filed for bk and a loss was created. I understand you are ok with leaving, why not just leave. What arguement could you possibly have for the credit union to keep you employed? The arguement would be completely different if you were reaffirming or didn't owe them any money. Personally, I don't think you stand a chance.

While I can't speak for the NCUA, I work closely with bank auditors and federal and state examinars, and we have many employees that have filed against the bank, and they have lived to tell and remained employed, even with the discharged loan or credit card.
but of course credit unions are very unfriendly to BK....you could call up the HR Director, and pose the question this way....I have a friend that works at another credit union and we were discussing BK and she said that she heard that another girl that she works with got fired for failing to reaffirm her loans in BK. Is that allowed?
Then you know where you might stand a little better, because you plan on leaving not long after you BK. They will find out then, so you could prepare for when the $h!t that hits the fan!
Good luck

[busbis]

Although bk is legal, some bonding companies will not allow employees who have created losses to other credit unions. If she is to get fired, the result wouldn't be due to the bankruptcy, but it could be for the credit union suffering a loss. Credit Unions are non for profit, they are not going to continue to pay an employee a salary who has created a loss to the membership.

[Gabe]

If she is to get fired, the result wouldn't be due to the bankruptcy, but it could be for the credit union suffering a loss.

Sounds like semantics. It would most certainly be due to the Bankruptcy.

[woohoogirl]

Sounds like semantics. It would most certainly be due to the Bankruptcy.

Isn't most of life semantics? Example - You take meds for pain that in no way affect your job, but your employer says you came to work stoned and fires you...now under the ADA if you are diabled then that's discrimination, however does that really change the whole mess?

I pretty much feel like if somebody is out to screw you over, then they'll find a way around it and come out smelling like roses....Not that I speak from personal experience

[$$only4ever]

I, too, work for a credit union and they can be tough. I think that you may have problems because you are not going to reaffirm and you are also employed by them. Just my thoughts.

[southernbelle]

Just from what I've read, credit unions aren't very BK friendly. If you don't lose your job, is it legal or even possible for them to affect/deduct money from your wages even if you don't plan to reaffirm? It doesn't sound legal, but I don't trust credit unions. If I were in this situation, I would wait to see what happens, but look around for other employment just in case.

[cleo1357]

They would not be able to garnish my wages, as that would constitute a collection effort after the automatic stay. They can't "cross-collateralize" wages, only security on other loans, and accounts held in the credit union. I know that my manager would not fire me if he had a choice, I am the strongest loan/account representative that he has at our very busy branch (per his own admission). He may be forced to fire me by the higher-ups, however. We will see. My credit union is tough, but they are also VERY careful not to do anything that might bring a lawsuit upon them. I will not quit, though I had thought about it. I may be able to collect unemployment if they do fire me. I would prefer to do that rather than getting a job for 3 months and then moving out of state. I don't think it would be fair to a new employer to train me, and then have me leave. I would prefer to stay at work for the 3 months because my family's health insurance is through the credit union, and my 10 year old daughter is very rough-and-tumble, and prone to accidents. She has ALMOST broken her ankle twice, and we thought she had broken her elbow earlier this week. Emergency room visits are not cheap.

Anyway,I'm just going to let it go, and see what happens. Either way, this bankruptcy is the best thing for me, and I'm trying to keep my sights on the big picture.

[kkk1]

This is a little off topic but why are credit unions out to make life difficult for BK filers?

I agree, in this situation they may not be happy for obvious reasons, but why in general are they difficult?

/disclosure: have debt with credit union.

[JollyGG]

This is a little off topic but why are credit unions out to make life difficult for BK filers?

I agree, in this situation they may not be happy for obvious reasons, but why in general are they difficult?

/disclosure: have debt with credit union.

Because credit unions are smaller and therefore suffer greater losses from BK filers. A big cc like citbank has thousands and thousands of accounts and do millions of dollars of bisness. If you bk on their accounts, even if you cost them 50-100 thousand, they have so many accounts that it doesn't really hurt their buisness. Credit unions are local and only typically have a couple hundread or couple thousand customers. When costomers cause losses via BK they feel it alot more in their losses.

[ann1073]

We currently have our checking account through a credit union as well as a credit card that we are hoping to have discharged in our bk. the attorney said that we should go ahead now and change banks because they will ask us to close our account after we file. from your past experience, does this sound correct? and, if the credit card debt is discharged, will they have to give me whatever money i have in my account when they ask me to close the account? if i were to actually close the account prior to filing, can they keep whatever money i have in the account because i owe on the credit card?