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    Navy Federal

    I am including Navy Federal in my bankruptcy. My 341 is 5 Dec. Only thing I am burning them on is a credit card. My checking/savings accounts are still open, just wondering when it would be safe from cross collateralization to start my direct deposits back into it? Should I wait until after my 341 or wait until my discharge? Also, I have a secured CC through USAA, they could the account but my CD hasnt been taken yet, any general time frame for them to do that or do they just write it off as if unsecured?

    #2
    They can't touch the money in your demand deposit accounts (DDAs). In fact, if you filed an an automatic payment still came out from your DDA account, then they must return the money.

    I can't tell you how USAA is going to behave with a secured CC. In some cases, secured credit cards have been known to return the deposit and just close out the credit card. I don't know what or when they will do this, but you just recently filed (November 3rd or so?).
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      I filed on 18 Oct. I am just wondering so I can shut down USAA altogether. Navy Fed, is the only one I want to keep. I thought Navy Fed cross collaterilized or is that just for secured loans like for cars and homes and not credit cards? Figured that was a work around for being able to not violate an automatic stay but get money back. Like a secured loan gets the item back.

      Comment


        #4
        Credit unions cross collaterize against other secured loans. If you had a car loan and a home loan, those would be cross-collaterized. I believe that Navy Federal (NFCU) doesn't cross-collateralize against demand deposit accounts (DDAs) and other instruments. But I'm not 100% sure.

        Besides, anything deposited after filing should not be in the reach of any cross-collaterization agreement if you're discharging the debt.

        I would just wait until after discharge.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #5
          Ok. Jist wanted to shut down accounts that were forced to stay open at the moment.

          Comment


            #6
            I work at a credit union and just recently filed bankruptcy also. Credit unions have every right to take whatever is left in your accounts to apply towards any loan balances, esp of the payments are late. So yes, they can freeze your account. If you have notified Navy that you have filed BR and gave them a case number already on your account, you should be fine. I also had two checking accounts, 3 credit cards, loc and my car loan with them which all was included in chapter 7. I didn’t trust continuing having my direct deposit going there so I moved my account elsewhere. I have a couple dollars still left in my account with navy but it is still available to me. Rumors say they cross collateralized, but for me to have a piece of mind about it, I still changed my dir dep.

            All your debts listed on your credit report will show in bankruptcy, then those account will show a zero balance and closed out. Check with usaa to see if they will return your security deposit. Most likely they will use those funds to pay off the loan deficiency.

            Comment


              #7
              All of my research before filing (Ch7) last year said move bank accounts away from any creditor with a debt that you will burn in bankruptcy.

              As a side note NAVY FCU is not as bankruptcy friendly as many believe. I financed an auto with them a couple months prior to filing. My lawyer said they were ANGRY and were going to sue me even though he made clear I was reaffirming the auto, so nothing really to sue for...

              They gave me a secure credit card after discharge. So I tried their banking but things take forever to post with them and my federal deposits didn't show early like they did with another credit union so I went back to the other credit union. Their mobile deposit process is also antiquated.

              NAVY FCU will NOT remove the bankruptcy flag on your online account post discharge even if you did not burn them. This is annoying because it's a bright red text warning every time you log in to your online account. They are the only bank that did not remove the flag post discharge. I can still login to USAA and nothing. My mortgage shows nothing and re-allowed online payments. The credit union I used for bank prior and post discharge shows no flags and gave me a unsecured $500 credit card (SkyOne FCU).

              I recently totaled the auto I financed with them. First time I ever had a serious accident. They denied my application for new auto. I appealed it and they approved it with an 18% APR. Capitol One approved with around 5.4 - 9.0% depending on new, used, etc.

              I recently closed the credit card and once I pay off the negative equity (forgot to get GAP the one time in my life), my hands will be wiped cleaned with NAVY FCU, never to return.

              Comment


                #8
                Vet2019, everything Ive read says Navy is BK friendly-ish. If you burned them, no credit until you pay them off. Pay them off you are re-opened to lending after 1 yr. Secured card immediately. Sometime i guess you have to throw their motto at them. As for the big red box of anger, you have to call their bankruptcy dept. and tell them they didnt take a loss and they will remove it. I am only burning them for a 3k cc. I plan on paying that back. Its still listed on PC so if it stays there I will chip away at it until its gone. So basically, everything Ive read, didnt burn them, wait 1 yr and be a good boy and they will lend to you. Burn them, no soup for you until you pay them back and be a good boy for a yr and back at it. Never used their mobile check deposit. As for gov checks, im currently going for VA disability so if I get anything, as long as it comes in when its supposed to, i wont care. Remember, we did a credit baddie, there are bumps and bruises to take for a bit. I can see them being mad AF too for a car loan and then file. Reaffirm, no foul. They can be highly aggressive from what I read.

                Comment


                  #9
                  Originally posted by spr250 View Post
                  Vet2019, everything Ive read says Navy is BK friendly-ish. If you burned them, no credit until you pay them off. Pay them off you are re-opened to lending after 1 yr. Secured card immediately. Sometime i guess you have to throw their motto at them. As for the big red box of anger, you have to call their bankruptcy dept. and tell them they didnt take a loss and they will remove it. I am only burning them for a 3k cc. I plan on paying that back. Its still listed on PC so if it stays there I will chip away at it until its gone. So basically, everything Ive read, didnt burn them, wait 1 yr and be a good boy and they will lend to you. Burn them, no soup for you until you pay them back and be a good boy for a yr and back at it. Never used their mobile check deposit. As for gov checks, im currently going for VA disability so if I get anything, as long as it comes in when its supposed to, i wont care. Remember, we did a credit baddie, there are bumps and bruises to take for a bit. I can see them being mad AF too for a car loan and then file. Reaffirm, no foul. They can be highly aggressive from what I read.
                  Yeah, everything I read said they were friendly too...that was my point though, they really aren’t. Plus their general practices are dated. But as I said my experience, your mileage may vary. I tried calling talked to several people they wouldn’t remove the box. All other banks didn’t have a flag or unlocked automatically after discharge, again goes back to my point on dated business practices. I am a year post filing and like 9 months post discharge.

                  Giving a secure credit card dollar for dollar isn’t really all that friendly. Plenty of banks will do that. 18 percent on an auto loan is not friendly...Capitol One around 5.6; Toyota Financial around 6.2. My score disclosure from Toyota was 683.

                  I have 5 credit cards. 1 secured and 4 unsecured. I’m prob going to close the Credit One and Indigo though since they have fees. Already closed the Navy one I got.
                  Last edited by vet2019; 12-05-2019, 07:07 PM.

                  Comment

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