Anyone work for a credit union or knows how they work?

[adviceplease]

Once again the one CC we have with our credit union is most likely coming back to bite us in the behind.

Back story: We have a CC with $650 balance on it, 2nd mortgage, and mortgage through credit union. We were told we had to include the CC in the bankruptcy and we can no longer pay on it. We figured that when the BK hit the bank worse case is the would empty our account for the balance. Now our lawyer says even if they take the balance of the CC from our checking they have the right to freeze our account until the BK is done and DC.

My husband has his check directed deposited and does not want to move it to a new bank.

So...

1. Is that true that they can freeze the account until the BK is done?
2. I have a separate bank account, if I switch his deposit to my account can they freeze my account? I am on the mortgage and 2nd mortgage, I am not on his CC through them. We have it so we can go online and transfer money back and forth between our accounts but we are the only person on each of our checking accounts.

Thanks.

[kenshirley]

CUs are a real bear to deal with.
I am going to tell you get your money out of any bank that you have loans with, period.
I am amazed your attorney did not tell you about cross collateralization.
They can take money to pay your accounts and may may not even know that you have that agreement with them.
Move your money and do it now!

[adviceplease]

The attorney told us to get a new bank, so the cross collateralization applies to my checking account also?

[kenshirley]

Generally it applies to all accounts.

[ccfriend]

I filed ch 13 in June of 08...I had a cc with my cu and an auto loan. The cc was in the bankruptcy but the auto loan was paid outside. Towards the end of Aug I went to go school shopping for my kids and out of no where my debit card was not working....I called my cu and they froze my account. They did say I could come in and get my money out. I did and opened an account at a bank. They also allowed enough money to stay to cover a few checks I had written. I am still paying my auto loan. The cu said I can have my account back after my bk discharge and I pay any remaining amount from the cc that wasn't paid in the bk.
My kids accounts were fine there!