Credit Union Wanting Payments

[gomare]

I have retained an attorney and will be filing 13 in September. I have been advised not to make payments to any creditors, and it's been 2 months. The credit union (at my place of employment) called today and said I should make small payments on my credit card in order to "keep my name off the list" that will be available to the board of directors (some of whom know me personally). I have worked here over 25 years and am a little concerned it could affect my job. I called my attorney, and was again told that I cannot make any payments to any unsecured creditors.

Has anyone else experienced this?

[klandsb]

I will be filing in SEPT also and I have my car pmt taken directly out of my paycheck and would like to continue doing so but I also have a credit card with them that has about a 2300.00 balance on it... I am so scared to see how they handle it... My car is a 2004 which I bought in 2007 so my pmts are low/interest is low/ I really want to keep the car because I need transportation and I will be filing a chapter 13 and paying for 5 yrs anyway... I am so confused about all this credit union stuff...

[rrockinggramma]

ok, unless you have a friendly credit union, you can EXPECT that they will no longer even talk to you.

To the OP, if you make ANY payments the trustee could try to get them back from the CU. Your best course of action is to go to the top and tell them you are filing. If you work at the credit union, they of course cannot fire you for filing the BK but they could find "other" reasons. However with your longevity at the place, it will be harder to come up with the reasons.

As a rule, credit unions have a clause that is known as cross collateralization. Basically it means that they can take any unsecured debt and attach it to any secured debt. And they try to say that if you don't pay on one you can't pay on another. So they may try to repo the car if you don't pay the credit card, etc.

However the BK stay forbids them from doing that. Now if you are not filing until sept and you already have missed payments, they will probably repo right away which will put you in a bind.

To the poster that doesn't work at the CU and is filing in Sept you might want to refinance your car at another place. The credit union will not be nice and will DEMAND that you pay in full the cc balance.

To the poster that WORKS at the CU, you need to talk to management asap and let them know it is coming. By law, they cannot fire you for filing BK.

[AngelinaCatHub]

This is a rock and hard place. If the CU is paid, the payment becomes preferential, However as we had only a few payments left on our car and had been members for 45 years, I intended to reaffirm this debt. In that case, as long as the OP can afford to pay, and the Judge agrees that he can, he can pay the CU inside of the bk process and it would not be preferential. At this time, my suggestion to the OP is to inform the CU that he is going to reaffirm (If that IS his intention) and ask them to hold off complaining to higher ups until the filing is finished and get the reaffirmation papers ready now to include into the paperwork. 'Hub

[rrockinggramma]

in a chapter 13 all secured debt is reaffirmed because the creditor gets paid. However with one OP she also has a credit card which will complicate her issues with the CU. They will fight the discharge or being paid less on the credit card and make the car title and lein sign off next to impossible until they are paid in full even if the debt is discharged.

From personal experience, refinance the car someplace else OR get a new one and give this one back to the credit union.

Also if you bank there, open up an account someplace else.

[AngelinaCatHub]

in a chapter 13 all secured debt is reaffirmed because the creditor gets paid. However with one OP she also has a credit card which will complicate her issues with the CU. They will fight the discharge or being paid less on the credit card and make the car title and lien sign off next to impossible until they are paid in full even if the debt is discharged.

From personal experience, refinance the car someplace else OR get a new one and give this one back to the credit union.

Also if you bank there, open up an account someplace else.

This is true, but I had a $2500 line of O.D. Credit and my debit card lets me go into this account as credit. I have never gotten it back up to zero, and once my car was paid off, I did get my title release. I am friendly with my CU and they treated me well. I intended to pay and still do the line of credit. At this time if the OP has filed or has the 7 on their credit history a refi might not be available. Now if they can afford both the car and the credit card, by your definition, the CC is a secured item too, the 13 would pay them as well as a reaffirmation. Is this not so? 'Hub

[rrockinggramma]

well the court will not see the cc as secured debt. They will get the same percentage to unsecured as all other creditors. Now in 5 years, AFTER discharge, the OP could pay off the card.

However INMO and not saying this is true of ALL credit unions but in general, once you file, CU will not service your account.

[klandsb]

Well, I am not sure at this point if the car w/be included in my bk...I will be filing chapter 13 and making pmts for 5 yrs ..Hve to meet w/attorney next thurs and will be asking alot of questions .. I am sure with my credit right now I wouldnt be able to refinace it.. On my cr union stmt it says my next car pmt isnt due until 10/09 which must mean I am paid ahead probally due to the 2 mths that we get 3 paychecks and they still take the pmt out out of my paycheck.... What a mess this could be... I know you shouldnt have attachments to a stupid car but I love my car...Its a 2004 w/only 45,000 miles on it and will last during the 5 yr plan...

[gomare]

Just to clarify....I do NOT have a car loan through the CU, just a credit card with a $2,000 balance. No loans or checking or savings or anything else with the CU.