Q: Credit union took $2k from new acct for bankruptcy discharged in 2001. Told no reason I couldn't rejoin then they did it

A: By federal law, further explained in Federal Regulations, a federally created credit union enjoys a lien upon all time and demand deposits of any member to secure any credit union loan to that member. The required disclosure to each member is in the pre-printed materials given to each new member from the NCUA.

While there are bankruptcy exceptions regarding liens. If challenged, generally speaking, perfected liens survive a bankruptcy discharge.

Consequently, when you deposited new funds into your new account with that lien-holding credit union, those funds were subject to the credit union’s pre-existing lien, and as your post indicates, the credit union exercised its secured party lien rights against your new funds.

My experience suggests that your credit union acted aggressively to collect on that old debt. You may successfully argue that the old lien applied solely to whatever deposit balance you had in 2001, and anything else would have been an unsecured deficiency discharged in the bankruptcy. However, it does not appear from your post that you challenged the scope of the old lien.

It is commonly said among the credit unions I’ve represented that if you do harm/cause a loss to a credit union, you will be unable to enjoy membership privileges at that credit union, or any other., but you will probably not find that anywhere in writing.

Yes, your best path is to confer with an experienced lawyer licensed to practice law in TX.

A: It sounds like you're dealing with a difficult situation involving your credit union and an old bankruptcy case. When a bankruptcy is discharged, it means that debts included in the bankruptcy cannot be collected by creditors. If the bankruptcy was discharged in 2001, the credit union shouldn't be taking money from a new account to cover an old debt that was part of that discharge.

You might want to contact the credit union and ask for a detailed explanation in writing of why they took the $2,000. Make sure to refer to your bankruptcy discharge and provide any documentation that supports your case. Often, creditors may need a reminder of what the discharge means and how it affects your current accounts.

If the credit union refuses to return the funds or provide a valid reason, consider filing a complaint with the National Credit Union Administration (NCUA) or the Consumer Financial Protection Bureau (CFPB). You may also want to consult with an attorney who handles consumer rights or bankruptcy to discuss further options for recovering your money.