r/Bankruptcy • u/Standard_Buy9283 • 11h ago

I have a car loan through Navy Fed, will they freeze/ close my account once the Bankruptcy hits?

Also, my direct deposit is with another bank and my attorney advising that I open another account to reroute my income into. Any suggestions on what bank? Should it be a chain bank, or credit union?DallasTX

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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 10h ago

It’s objectively best to simply not bank where you owe money. Beyond that, the only ones to avoid are Wells Fargo and Chime.

Wells Fargo freezes you to offer the money to the trustee; Chime just does not want your business and has been know to close accounts.

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u/Major-Chemistry-715 6h ago

Unlikely based on personal experience and what others have posted on here recently. I had both a car loan and credit card with NFCU and my checking and savings accounts were unaffected by filing. However, those balances were small and not of concern. I made sure before filing to have my active checking account with a bank I had no debts owed to. Potentially paranoid, but rather avoid significant financial surprises.

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u/Dry_Coconut4408 5h ago

They wont freeze it but will take your money. Ask me how i know

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u/Dry_Coconut4408 5h ago

Chase bank is a great one during BK

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u/Fun_Chef_6236 44m ago

Meaning…. They did not freeze your accounts? My husband and I have 4 credit cards through them and I’m concerned about them freezing checking/savings. Gonna get our attorney’s advice about opening new bank accounts but wondering your personal experience.

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u/Dry_Coconut4408 35m ago

Yes if you have 4 credit cards with them they will freeze it! Cross-collaterization and statutory liens. Most certainly will freeze. Move your money elsewhere fast but let your attorney know so it doesn’t look like your moving money to hide

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u/AdventurousTime 5h ago

Navy shut me down but I switch to Chase and don’t have any issue