Credit Union Funny Business or Normal?

[Keebler]

I had a 2006 pickup truck that I stopped making payments on three months before I filed. I indicated that I planned to surrender the truck and I finally did surrender it a couple of weeks before I got my Chapter 7 discharge.

They never lifted the stay and I voluntarily dropped it off at the credit union.

They auctioned the pickup truck right away and it looks like they got wholesale value based on what I can tell from KBB.

What's weird is that they never closed down my account or anything.

Tonight I went online and I can see my checking and savings accounts are just as I left them. (Empty) I can also see where they credited the sale amount of the pickup to my loan balance and now it still shows several thousand dollars owing.

They haven't charged any interest and the payment due date is still last May.

Why wouldn't they close all of this stuff by now?

[JRScott]

Generally speaking when liens are involved such as vehicles and homes they do not close out the accounts even in bk until they have sold the property. Which they have done here it appears. I'd give it a week or so as paperwork moves slowly at some corps.

Course they could be waiting on your bk to end with a final decree which will then remove the remaining debt.

[spell]

What you really want to watch out with credit unions are setoffs.
If you agreed when you opened a deposit account with them (burried in the fine print) than they could use anything on deposit to make good for any defaulted loan (like this one). They can still do that despite the BK. Same as if you'd written them a check for that amount.

[magyar123]

Also called cross collaterization, or in other words legal theft.

[Keebler]

What you really want to watch out with credit unions are setoffs.
If you agreed when you opened a deposit account with them (burried in the fine print) than they could use anything on deposit to make good for any defaulted loan (like this one). They can still do that despite the BK. Same as if you'd written them a check for that amount.

Thanks. I am a member of two credit unions and I made sure I had less than $20 at both before I filed. I planned ahead and started banking elsewhere well before I filed so these accounts are just sitting there. Somehow I thought they'd grab the few bucks left in the account and close it down by now.