Credit union line of credit taking from savings account

[Floridagail]

My debitcard stopped working with cu. I called my ck account is still open but my credit line is charged off. They cannot take any money from my savings or checking due to bankruptcy. The would not take any money they said. However I cannot get my debit card back due to owing loan. I have to be in good standing to get debit card back.
So dont know what i will do had this acct since 1977 and so much easier than regular bank. I can reaffirm or just make volunitary payments to keep my debit working and sto p paying anytime and lose my card. Just thought I would let you know. I dont know if i can say name of cu or not.

[Floridagail]

I have checking acct at Cu, and a creditline ,since 1977, I hate t

[AlreadyFiled]

If you have a checking/savings account at the same bank you bk'd a credit card from, they CAN take from your checking or savings account. It is called "right to offset" its normally in the small print.

I suggest if you have a checking and savings, get your credit cards from other banks. Never at the same one.

[Floridagail]

So were you able to keep your checking account at the cu? when you letmthe mortgage go with same cu.

[Doghouse]

^^^

Ah, okay, if all they do is take what I have down to zero but not put the account balance into the negative then I am okay with that. I guess it's when you have automatic withdrawals that's not cancelled yet that can deplete your acct into the negative. I just don't want to deal with checksystems and negative accounts even if BK will discharge them. Might as well just go close those accounts at the CU.

[epiphany]

I owe that money? I dont think they will let me close the account with a negative balance. I will call today and talk to somebody.

I find it interesting that they would deduct for themselves monies from an account with a zero balance. I BK'd on a negative checking account from my CU (due to fees from creditors who tried to put unauthorized payments though). My CU took the measly five dollars from the saving account but did not throw it into the negative.

In any case, it really doesn't matter. All debts will be discharged in a successful, non-contested Chapter 7.

If for some reason you have a problem with Checksystems, just contest it as you have a solid leg to stand on.

Sleep tight and good luck with your BK,
ep

[drowningNdebt]

Now a days any bank will reaffirm a car loan. The auto industry is in the pipes. However, be very careful reaffirming. You will be stuck with the debt no matter what.

[Doghouse]

Different CU's behave differently. I filed CH 7 9/30/08. I have a 2nd mtg ($62k), an auto loan, a VISA card and a checking account with the same CU.

I am surrendering my house in the CH7 (so the CU gets zip on the mtg). I have removed all but about $30 from my checking account and the visa is in the BK ($23k).

I reaffirmed the car for the same reasons you cite ($8k). I was able to change the terms on the car to make it a little more affordable and I asked the CU to remove the Cross Collateralization to the credit card. THEY DID. My reaffirmation agreement specifically states there is no cross collaterlateralization to any other account.

My opinion - CU's are easier to work with now then they may have been in the past because you can actually get to a person that will work with you in the BK dept. At least that is my experience. YMMV.

StartingOver, so signing the reaffirmation was contingent on them changing the terms of your car loan? Also did they reduce the total balance owed or just changed terms to reduce your monthly payments?

My car loan is with a different CU. I owe 14K and just defered payment for 2 months ('cos I am unemployed and also helps my means test by not reducing amount owed by the time I file in Feb 09). I'm hoping to get them to change terms too.

[Doghouse]

So, from what I am reading here, the CU will siphon the $50 in both checking and savings AND then keep deducting my account till it goes into the negative? Just because I have a 1st and 2nd mortgage plus a HELOC and credit card with them that I have stopped paying?

So, is it advisable to just go withdraw the $50 left and just close the account? I don't want a negative account going into checksystem.

[jeb]

Bell, if you run the amortization table from the original note - you will see that you are doing the right thing. Since there is only 20 months left and a reasonable payment (assuming you can afford $300/mth), then why not reaffirm?

Seems that those in the know here say NEVER reaffirm.

If I understand it correctly, if you reaffirm then you are on the hook for the amount of the loan and they can hold you for all of it if at some point in time you are not able to make the payments.

However, if the loan goes into the BK and you keep making payments, they will accept them but can't hold you responsible for the whole amount. - jb

[StartingOver08]

MomIcantfindmy, I wanted to go that route with an inexpensive car from Craigslist but my lawyer informed me that I needed to have a car payment or I would be going chapter 13 instead of 7. So I'll be keeping my pickup which only has about 20 months of payments left on it at $300 per month.

Bell, if you run the amortization table from the original note - you will see that you are doing the right thing. Since there is only 20 months left and a reasonable payment (assuming you can afford $300/mth), then why not reaffirm?

[Bell30656]

MomIcantfindmy, I wanted to go that route with an inexpensive car from Craigslist but my lawyer informed me that I needed to have a car payment or I would be going chapter 13 instead of 7. So I'll be keeping my pickup which only has about 20 months of payments left on it at $300 per month.

[FloridaGuy]

Just prior to our filing we had a loan that was automatically deducted from a saving account. We requested that they stop the auto draft. We drained the saving account as told to do. The company still auto deducted the payment, and the bank (not a CU) paid it, which put our account -875.00. We included negative amount in our BK. About 2 weeks later our checking account (which had about $150 and a second savings account which had $44.00 were drained to $0, and the amount put toward the overdraft.

After that I spoke with the bank, and let them know we had filed BK (Which they should have already known anyway) because I needed to put some money back into the checking account as there were some auto debits I forgot about, and was afraid they would drain the money out again.

I was told since they were aware of the BK... no more attempts to collect for the overdraft would occur so we could place money in other accounts if needed.

We are now trying to get the money back they had deducted originally as it was technically property of the BK estate at that point.

[mindyandy420]

So does this mean

I owe that money? I dont think they will let me close the account with a negative balance. I will call today and talk to somebody.

[StartingOver08]

Different CU's behave differently. I filed CH 7 9/30/08. I have a 2nd mtg ($62k), an auto loan, a VISA card and a checking account with the same CU.

I am surrendering my house in the CH7 (so the CU gets zip on the mtg). I have removed all but about $30 from my checking account and the visa is in the BK ($23k).

I reaffirmed the car for the same reasons you cite ($8k). I was able to change the terms on the car to make it a little more affordable and I asked the CU to remove the Cross Collateralization to the credit card. THEY DID. My reaffirmation agreement specifically states there is no cross collaterlateralization to any other account.

My opinion - CU's are easier to work with now then they may have been in the past because you can actually get to a person that will work with you in the BK dept. At least that is my experience. YMMV.