First, if you do not have any debt with the credit union, usually your account will stay open and you can keep transacting with the credit union, just as if you had not filed bankruptcy.
If you have debt with the credit union and cause the credit union a loss, due to the bankruptcy filing, most credit unions will require your accounts to close. In my experience, this is only for unsecured debt or surrendered secured assets that are discharged in a bankruptcy. If you have secured debt you intend to keep and continue paying on, most credit unions will not require your bank accounts to close.
Some credit unions may also utilize cross-collateralization. What this means is if you have unsecured debt and secured debt (besides your homestead) with the credit union, they tie the debts together. Therefore, if you stop paying on your unsecured debt, they could involuntarily take back the secured collateral. In a chapter 13 bankruptcy, depending on the amount of equity in the collateral, you may be able to strip off the unsecured debt to your secured loan. In a chapter 7 case, you would need to continue paying on the unsecured debt to keep the secured collateral.
Credit Unions will sometimes also require reaffirmation agreements in chapter 7 cases. Reaffirmation agreements are essentially contracts within bankruptcy saying you are keeping your personal liability on the debt. Every case is different, therefore, you should speak with your attorney on whether to sign or not. Most attorneys advise against it, as you file bankruptcy to get out of debt and signing a reaffirmation agreement, will recommit you to the debt.
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No matter where you are in Minnesota, if you have debt with a credit union and have questions about bankruptcy, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
