Difficult Employer/Bankruptcy Situation

[lrprn]

We currently have our checking account through a credit union as well as a credit card that we are hoping to have discharged in our bk. the attorney said that we should go ahead now and change banks because they will ask us to close our account after we file. from your past experience, does this sound correct? and, if the credit card debt is discharged, will they have to give me whatever money i have in my account when they ask me to close the account? if i were to actually close the account prior to filing, can they keep whatever money i have in the account because i owe on the credit card?

Ann, the reason your lawyer wants you to move your checking account is likely due to the credit card. Credit unions are notorious for having cross-collateralization clauses in their credit card and other account agreements. That means the credit union could take money from your checking account to cover the credit card debt without your permission and without notifying you first - a bad thing.

Move your checking account to another bank before you file to avoid this possibility.

[ann1073]

thanks, i will get that done today!!

[southernbelle]

Just a general note. Thank God for the great Moderators on this site. You guys are great. The information I found here in invaluable and I just had to say it out loud. Thank you again.

[cleo1357]

I Called CUNA and found out that bankruptcy does not affect their bondability. The notice was mailed by the courts yesterday, so we'll see what my boss says to me. I'm SO nervous, but I am afraid to approach him and tell him myself. I'll let you guys know what happens!

[FreshLikeADaisy]

Cleo, in an earlier post you wrote:

...My credit union is tough, but they are also VERY careful not to do anything that might bring a lawsuit upon them. ...I may be able to collect unemployment if they do fire me.

My thought on the matter is, as woohoogirl noted, if they want to screw you they will find a way to do so.

However -- and this is where it works out well for you -- if they are intent on avoiding lawsuits, what they will generally do is wait until after everything is settled, and then fire you for something asinine like not being a "team player" or having bad breath. Something subjective, unprovable and not illegal to fire for.

But believe it or not, this is actually in your favor if you decide to try for unemployment, because it's -- again -- subjective and unprovable, but this time in your favor. You would bring up the bk as the actual provoking factor, and combined with your positive work history and the timing of your firing, I don't think you would have a problem getting unemployment at all even though you were fired and not laid off. (If you don't already have copies of employment appraisals, positive feedback, notes and letters of commendation, etc at the house, go ahead and make copies and bring them home now, for just this purpose.)

In other words, yes, they may fire you, but if they are savvy and intent on avoiding lawsuits, they'll wait until after you're discharged... by which time you'll be out on the farm milking the cows anyway. It helps that your immediate manager is on your side; if he says he can't do without you they pretty much have to give him time to make other arrangements.

Either way, I think you're pretty safe for now, which is all you wanted anyway, and if you're not, unemployment bennies should be easy to get. So your decision to just ride it out and see what happens is probably very sound, given what you've said about your employer. Good luck!!!

[cleo1357]

Fresh, I already brought home copies of all of my reviews, the praising emails, and OH YEAH - the lovely letter of reference from the president of my credit union to CUNA for a CCUE certification (done last week).

I think the most stressful part is not knowing what they will do. It's hard to plan

[ThisCantGoOn]

I work for Home Depot, they seem to be bankruptcy friendly to their employees. As a matter of fact, the same month my Home Depot credit card account went 120 days past due, I made Associate of the Month. I laugh a little bit everytime I receive an award from them. My account is now with a third party collections agency. They are offering to settle a $9000+ debt for about $4500. I will be making a counter offer on April 30 via bankruptcy, chapter 7 for a grand total of $0. HR has never called me in to ask me about my account. With the HR force being cut in half, I doubt they ever will.

[CindyLou]

I work for Home Depot, they seem to be bankruptcy friendly to their employees. As a matter of fact, the same month my Home Depot credit card account went 120 days past due, I made Associate of the Month. I laugh a little bit everytime I receive an award from them. My account is now with a third party collections agency. They are offering to settle a $9000+ debt for about $4500. I will be making a counter offer on April 30 via bankruptcy, chapter 7 for a grand total of $0. HR has never called me in to ask me about my account. With the HR force being cut in half, I doubt they ever will.

I think home depot card is actually Citibank....so the employer probably wouldn't know. Some companies own their own credit cards (Target is one....)

Credit Unions definitely know because they are the direct lender.

You will probably continue to be fine with Home Depot.

[FreshLikeADaisy]

Fresh, I already brought home copies of all of my reviews, the praising emails, and OH YEAH - the lovely letter of reference from the president of my credit union to CUNA for a CCUE certification (done last week).

I think the most stressful part is not knowing what they will do. It's hard to plan

I completely understand. But one thing to remember is this: in the meantime, as you work, be cognizant of how you work and the good, commendable job that you do. Get it in your mind and your heart just how good you really are on a daily basis, whether anyone is watching or not.

If they do decide they want to fire you on "trumped up" charges, that will basically consist of them telling you that you suck as an employee. Unfortunately, the less *actual* cause there is, the worse the trumped up stuff has to sound: the point is to avoid lawsuits, and they have to make sure they can prove you were an unacceptable employee.

This can really sting, making you doubt yourself and what you have to offer. It can really take the wind out of your sails for a while UNLESS you expect it, know not to take the slander seriously or personally, and remain very well aware that you are in fact a great employee.

Get some good references while you're there (doesn't have to be a direct mgr, though that helps; peer references are great too as well as managers in other departments that you may know well enough to ask) and after you're gone, you'll never even have to think about them again.

Fortunately, I think you're quite safe for at least as long as you'd like to be. Good luck!!!!