Prior CH 13 and Credit Union

[TooMuchCredit]

Got an interesting message from my Credit Union. I have a prior Ch. 13 (and it was not a 100% plan) that was discharged 6+ years ago. This CU was included in that. I had an equity loan with them and surrendered my house (I did a 13 as I had lost my job, but found a new one and also wanted to keep my car)

In the message, they are stating that I cannot include my current debt with them since they were included in a prior Ch. 13. The current debt is a credit card.

I think they are blowing smoke. Are they?

I hate that I am back in the BK situation again.

[optimistic1]

They dont dictate the law.

If they were in a prior 13 and then, they extended more credit to you, that's their problem.

If you qualify for a 13, you qualify for a 13, creditors don't get to pick and choose and opt out based on prior 13.

That's the way I see it.

I could be wrong though.

Do you have an attorney?

[StartingOver08]

Yes, they are blowing smoke. If you fall for this one...I have some swamp land for sale!

When I filed I had several creditors/CA's say: "We are not subject to the federal bankruptcy laws." They lie so much they don't even realize we know their lying!

[TooMuchCredit]

Thanks! I know there is that CU cross-collaterlization issue but didn't think it applied to old debt from a prior BK!

I have an attorney. Some creditors still call daily though I have given them the lawyers info. It's maddening.

[optimistic1]

They are violating the law if they keep calling you instead of your attorney under certain circumstances, Im sure someone can help me on that one.

[Flamingo]

Thanks! I know there is that CU cross-collaterlization issue but didn't think it applied to old debt from a prior BK!

I have an attorney. Some creditors still call daily though I have given them the lawyers info. It's maddening.

Credit Unions have a thing against their members that file BK. Since you included them in a previous filing you can be sure they are not happy campers over the situation. Your previous debt with them was discharged in bankruptcy and any debt you incurred with them again after that time does not fall under your prior bankruptcy and can be included in your new filing. However, I would write off this credit union forever for any future accounts/loans after including them twice in bankruptcy as I don't think they will give you a third chance.

Your creditors may continue calling until you have your case number. Once you get that, answer the calls, give it to them and keep a log by your phone as to who you have given the information. Most get the filing paperwork pretty quickly and the phone calls will die down and you will enjoy the quiet...