Wednesday, December 30, 2015, 10:21 AM
Posted by Administrator
Note: If you have nothing to do with credit unions, don't bother reading this entry.....b-o-r-I-n-g.

THE PROBLEM WITH CREDIT UNIONS.... When you put money in your bank account, the bank considers that it owes you money. You are carried on its books as a "payable". When you put money in a CREDIT UNION account, its books reflects that you have additional "shares" in the credit an amount equal to your deposit. If you owe your bank money, and file bankruptcy, the bank will wipe out the debt but can't wipe out the payable. If you owe a credit union, the bankruptcy will wipe out the debt........and the credit union will cancel your shares (my guess is that they have a perfected security interest in the shares)....your deposit (at least in an amount equal to your debt) will disappear.

It is bad form to have money in a bank you owe to (there is a "common law" from merry olde England that we have adopted... right to, in some circumstances, the bank can dip into your account. But, it is worse to have "money" "in" a credit union you owe money to. So....don't.

(Note: Credit unions will give you your "shares" back if you sign a Reaffirmation Agreement....but, is that something you want to do? Bankruptcy doesn't always wipe out anything or everything. Insert other appropriate disclaimers here _______________________________)

Note: I warned you not to read this!

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