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

[Waited2long]

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 Saving account today, but I never use it.

I did the same with a local credit union. Haven't filed yet but hoping for the best!

[octoblonde]

SeattleBK, that is good to know that the CUs did not close your account simply because you filed BK. Thanks for your response!

[tobee43]

well, i do have another interesting tid bit to also add to this...

we did join a credit union bank account approx. 1 year prior to filing. we used it for direct deposit for our pension because we understand them to be "more" bk friendly. oh! and they never closed our checking account when filed or bk, however, we didn't have a cross colllateral lending or cc's with them.

we went into our credit union yesterday and was asking if we could borrow against our saving account...or in other words use it for collateral for i.e. a car loan. ( you know...a SECURED loan!! LOL), in other words our OWN money would secure the loan...good deal for the bank one would think in today's lending market. sounds safe enough right???

we were told we could borrow our OWN money at a rate of 18% payable of course to the BANK not us...although we are borrowing our own money!

[Flamingo]

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.

You must understand that legal office staff and/or their paralegals get calls all the time from people trying to get free advice about anything and no office staff person or paralegal can give legal advice. Note that any bank or credit union, as soon as the get wind of a Bk filing, can close any account you have with them at any time. It's all right there in the paperwork you signed when you applied for the account or opened the checking account. Credit Unions are notorious for closing accounts quickly when there is a BK filing.

Also realize that legal office staff gets bombarded with all sorts of questions like these and what she should have done was advised you she could not give you that information and you would have to speak to the attorney - but since it seemed to be general and not legal information, she was just telling you what will probably happen and to help answer any general questions you may have.

[SeattleBK]

No, problem Octoblonde.

What helped me the most when I was in the process of filing for Bankruptcy is reading about other people's experiences on BK forum(especially since I filed pro se).

Which is part of the reason, I still lurk after filing more than two years ago. I like being able to be helpful the way others helped me out so much during that time.

The other reason is BK forum is plain addictive. I'll go months without logging on and I'll come back every now and then to see what's going on.