What typically happens with mortgage and credit card at NFCU

[NoMoreCards]

My daughter is looking at filing Chapter 7 in the next couple of months. She has a mortgage with Navy Federal, and a credit card with a 13K balance. She intends to keep making payments on the house and NOT reaffirm. However there is concern that once the house is paid off (or sold at a later time), that NFCU will take the 13K card balance to the house deed.

I know years ago NFCU could do that through cross collateralization, but I did not know if they could still do that or if rules had changed. Has this happened to anyone? What was your experience?

Thoughts? She knows this will kill her NFCU relationship, but working minimum wage she has no way to pay that 13K card along with her other debt.

[LadyInTheRed]

The rules have not changed. If there is an enforceable cross-collateralization agreement, then NFCU can include the credit card debt as in the amount required to pay off its lien on the house. I can't tell you whether they will. Hopefully somebody with relevant experience will come along.