credit unions and bankrutpcy

[6ftladycop]

What do you mean "you can't cancel the account"

Remember, we are talking about the checking/savings/money market accounts (i.e. the cash accounts). If the CU won't let you "technically" close the account, simply withdraw all your money and stop any automatic deposits that go into the account.

The Credit Union accounts are set up by them for all employees to only be able to take out 200.oo dollars at a time a day. Tomorrow is payday and I have over 2000.00 dollars in there. I sure do not want them to take all my money because I closed my account due to bankruptcy, but rest assured, if I close it during any time I have money in savings or checking, they are taking it all.

[rrockinggramma]

The credit union can refuse to service you however which means that they will freeze your account. It depends on how "friendly" your credit union will be. I have found that most are not friendly at all when it comes to them losing money. The cram down will cause them to seize up on everything. Our lawyer told us to get a new account somewhere else asap and to stop putting any money into that credit union. Sure enough, within a day of filing, I walked in to cash a check and they would not even allow me and escorted me out of the credit union. Needless to say, I have never been back there.

[lrprn]

...but rest assured, if I close it during any time I have money in savings or checking, they are taking it all.

Can you leave $10-20 in your checking account which will keep the account open and active, then open a new account for yourself away from your credit union and deposit what remains of your $2000 there instead?

[rrockinggramma]

of course you could do that. But I wouldn't be giving them 2000 to seize cause they will with their cross collateralization clauses etc.