LostinMI Posted August 24, 2005 Report Share Posted August 24, 2005 I have a line of credit (overdraft protection) at my credit union that I also have my checking & savings accounts with. If I file bk & reaffirm this debt with the credit union, what is the likelyhood that the credit union would still close my accounts? Or would they automatically close the accounts, even before I have a chance to reaffirm the debt? Could I just call the CU and ask them their policy on this?Any help would be appreciated!! Link to comment Share on other sites More sharing options...
willingtocope Posted August 25, 2005 Report Share Posted August 25, 2005 I don't actually have an answer for this...but I assume you're saying that your overdraft protections is carrying a balance due...right? If that's the case, do you have enough money in the savings account to cover it? If so, I'd suggest you pay it off, withdraw the rest and move to another bank. It would be best to avoid surprises... Link to comment Share on other sites More sharing options...
LostinMI Posted August 25, 2005 Author Report Share Posted August 25, 2005 No, there is not enough money in saving to pay the account off. But if I were to pay it off before filing BK, wouldn't it be considered preferential payment anyways? It is about $900. Link to comment Share on other sites More sharing options...
jq26 Posted August 25, 2005 Report Share Posted August 25, 2005 That's quite an overdraft! I may be wrong, but I have a feeling that Willling was thinking that your overdraft debt was a much smaller amount, and taking care of the small debt was a way to save your relationship with the credit union (you'll need to build relationships with credit unions after BK, trust me). If I'm in your shoes and you're net upside down on your account balances with them, I first see if they'll work something out to drastically reduce the balance. If not, then file and include the credit union in your creditor schedule. Link to comment Share on other sites More sharing options...
willingtocope Posted August 25, 2005 Report Share Posted August 25, 2005 As I understand, paying off a contractural debt is NOT preferential treatment. Paying a friend or relative might be. Doesn't really matter because if the trustee thinks it is, he'll take care of making the paid party cough up the money.So...if you can't afford to pay it off...take what money you can out of your other accounts (get cash) and go open an account elsewhere. Link to comment Share on other sites More sharing options...
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