OD protection loan right before filing

[basketsbears]

Hi,

We are filing Wed. 6/27. This past Tues we put $200 from our OD protection loan (it's been paid off) to our checking account for gas, food. We put the $200 back today when we got paid. We rarely use it. Should this be a problem filing next week? I wouldn't think so, didn't think to ask attorney when I emailed her earlier this week.

Thanks!

Lynn

PS Do you think CU will close this account after BK filed - it is zero balance now, but I would assume would be listed???

Counting days till Wednesday!!!

[LadyInTheRed]

As long as you haven't paid that same creditor more than another $400 in the last 90 days, it shouldn't be a problem. If you have made more than $600 in payments to the same creditor within 90 days before filing, tell your attorney so it can be disclosed on your petition. The trustee can get the money back from the creditor to distribute to other creditors. It still would not really be a problem for you.

[basketsbears]

Thanks - we haven't used this much at all. We had a payment of $210 (kinda same situation) in February of this year and nothing since then.

Thanks!

Lynn

[AngelinaCat]

I think you are okay. However, since this is a CU you are dealing with, this overdraft protection loan will most likely be closed. If you want to keep it and any other account with them open, you need talk with their BK department. We had an overdraft protection loan, and a car loan with our CU. 'Hub wished to stay with our CU as he had been with them nearly 40 years, and he was able to work things out. We reaffirmed both the car loan and the OD accounts. We only had a few more months to go on the car anyway, so everything worked out fine.