Has anyone heard of a credit union closing account just because of bk?

[octoblonde]

I was setting up a consultation with a 2nd attorney regarding filing Ch.7. His legal secretary seemed rather misinformed. She told me that JUST because I file bk, my credit union with automatically close my account. I have no loans with them and owe them nothing. When I asked why, she said it's because I "own shares" in the credit union and it's not my money. I was worried and thought she was wrong, so I called my credit union and asked them without giving my name. After being transferred to 5 different people, they finally said no, they would not close an account just because of bk. Only if the debtor caused the CU a loss would they close the account.

The legal secretary also did not seem to know anything about Federal exemptions and told me that SSDI money (lump sum) or otherwise is NOT exempt from the Trustee. She said it was only exempt from creditors. She got short with me when I questioned this seemingly wrong info. Then she said I had to meet with the attorney and have him deal with me. Well, who else would I want to meet with for a consult? Geez.

I have a feeling I'm not going to be able to find an attorney locally who can deal with SSDI, Federal exemptions for homestead, etc. I think I should cancel my consult with this atty if his secretary is so inept and ill-informed with a bad attitude.


Has anyone else heard this about the credit unions or SSDI or did she give me inaccurate info?

Thanks!

[tobee43]

i agree with you, i would find another atty...also i consulted 5-6 atty's before hiring one. so, i would not feel anything about that, since we NEED to hire someone we feel; will BEST represent us.

and yes, i have heard CU's closing accounts all the time when they get notice of the BK....the idea...LOL!! if you were informed correctly, was to close the account prior to your filing. i'm certain you will be fine...but it is a pain!!

[DYLAN150]

Can his legal secretary give legal advice?

[tobee43]

Can his legal secretary give legal advice?

no, not really, but they most certainly do, all the time. it REALLY gets me...because THEY say they are paralegals etc.

well after 4 years at BU, to get my national paralegal certification... i take insult to these....18 year old " legal secretaries"...and NO offense...I JUST LOVE 18 year old people...really, i do,i had a few.....just not giving me legal advise with absolutely NO training.

[octoblonde]

I'm assuming she was a legal secretary. Maybe she was a paralegal, I don't know. She was an older sounding lady.

[discouraged]

I did not hire one lawyer because of the office staff. I felt from the start that they were condescending and I refuse to pay to be looked down on. The one I did choose - part of the reason was the warmth and understanding that came over the phone from the receptionist. That told me from the start that I was dealing with compassionate people. Of course, it was the actual interview that helped make my decision but it certainly helped to feel comfortable right from the start.

As for the credit union, I had already switched banks because of all I'd read here but the lawyer did say that credit unios were known to close and/or freeze accounts - at least here.

Keep searching - you will find one that you can trust and that has the answers you need.

[octoblonde]

Discouraged, Thank You. I will check with my credit union again just to make sure they don't close or freeze accounts just because of bk. I love my credit union and it's right across the street from my house. I'd rather not switch to a bank if I don't have to. I'm going to cancel my consultation with this particular lawyer. He may be a good attorney, but his staff leaves much to be desired. Right after I gave her my address, she asked again which office I wanted to come into. One 5 minutes away or one an hour away from me. Like, "duh!" Someone wasn't paying attention, lol.

[tobee43]

Can his legal secretary give legal advice?

even paralegals are NOT suppose to give advise.. ONLY do what is ask of them from the atty.


discourage is correct, just like we did, went from atty's office to atty's office until we found just the right firm for us.....let us know how you make out!

[discouraged]

Sounds like that one is a bankruptcy mill, which you will read you should definetely stay away from. I'm amazed that with all the unemployment and people out there looking for jobs that a firm who is supposed to help people would hire condescending help. Oh well, I may have even stayed with them because the financial counselor I saw who advised me to file bk recommended them. But, after reading so much here and learning that I had the right to search for someone I felt comfortable with, I was able to disregard that advice and search until I found one that I WAS comfortable with.

Good luck, octoblonde, and stick to your guns. Whoever you choose is the person you are depending on to help you get your frest start. It is too important a decision to make to trust 'just anyone' because they have a title behind their name. And, unfortunately, there are a lot of folks going through bk right now so you should have a lot of choices.

[HHM]

Actually, when it comes to credit unions, she is right. CU's will typically close the account. CU's are extremely hostile to BK filers. Now, if all you have is a checking account, but no loans or CC's through that CU, you may be alright, but if you discharge any loans with a CU, they drop you like yesterday's garbage.

[AngelinaCat]

Our CU that 'Hub had been with for more than 41 years closed our account. It is usually standard policy. The reason was that we were part of a community, and that by declaring BK, we were letting the other CU members down. 'Hub wanted to stay with this CU and spent several hours on the telephone with their credit and BK departments. The personnel were very nice, and we were reinstated. We had to reaffirm our car loan--which we wanted to do anyway. We only had about ten more months to go. We also reaffirmed an overdraft protection loan. Our account was closed for about ten days before it was reinstated, and several outstanding checks were 'bounced' during that time. The CU reversed those bounces, and reversed the NSF fees that accrued. We were probably able to do this because of the long-term relationship 'Hub had with them.

But as for the attorney..... you need to consult with a few more.

[lillymarlene]

i have heard CU's closing accounts all the time when they get notice of the bk

I sure hope this isn't always true. I used to have 2 accounts business and personal with a credit union that I really liked. Unfortunately, I had a revolving credit loan with them that I was unable to pay back. (I'm in a 13 so I can't make preferential payments to anybody.) Just last week, I noticed that they closed my personal account and probably the business one is closed, too.

However, before I filed, I opened a business account with another credit union where I owe no money. I certainly hope I can keep that account, since I need one for business. It was hard to find that bank, since between accounts that I was attached to with my father (who died owing about everybody) and my own "screw ups" I was running out of banks. LOL

[DYLAN150]

This kind of reminds me of USAA and when a person files bankruptcy and writes off a credit card with them they cancel your auto insurance. It use to happen all the time. Pay back I guess.

[octoblonde]

I don't owe my credit union any money. I have no loans or credit cards through them. The only thing I have is $500 overdraft protection that I do not have a balance on. When I called the credit union, I was transferred to several different departments and the woman who finally gave me an answer as to whether they close account due to bk had to put me on hold to find out the answer. She said as long as I don't cause them a loss, which I certainly would not, then they keep the account open. I love doing business with that credit union. I've been with them for 11 years. I hope the credit union employee gave me the correct answer.

[SeattleBK]

I opened two new accounts at credit unions( BECU and Kitsap Federal Credit Union) with both a checking and a savings and a visa check card approximately three months before I filed and neither credit Union closed my account.

Note: I didn't owe these two credit unions anything, and I still have both of those accounts today.

I purposely opened those two accounts because I owned the Credit Union Navy Federal bucket loads of money. Navy Federal of course closed my checking and credit card account, but didn't close my savings account.

I have about $75.00 in my Navy Federal Savings account today, but I never use it.