MasConcepts Incorporated

Hi all, I’m hoping to get some insight ASAP from anyone who’s been in a similar situation.

I know this isn’t a place for legal advice, and I do have a bankruptcy attorney. Unfortunately, he’s been slow to respond, and I’m trying to understand what to expect based on real experiences.

I haven’t filed for bankruptcy yet, but I’m considering filing mid-year while I get everything organized. I have two main concerns.

First — Navy Federal Credit Union

I currently bank with Navy Federal. I don’t owe them any money, all of my debt is with other credit cards. I do have a Navy Federal credit card with a high limit, but the balance is currently $0.

My attorney suggested I could use the card, but I’ve read mixed information online saying Navy Federal may close accounts or permanently blacklist members after bankruptcy, even if they’re not included in the filing.

Is that actually true?

If so, how would this affect my spouse, who is also a Navy Federal member but is not filing bankruptcy? (I’m filing individually due to ~$100k in debt. I also live in CA.)

Second — money gifted to our child

We had a baby girl last year, and family and friends gifted us money specifically for her. Most of it was used for necessary baby expenses, but about $2,000 remains in a savings account under my name only, labeled “Baby Savings.”

Additionally, we received more cash during Christmas that was explicitly given for her future college education. We want to honor that intent, but I’m worried about how this might be treated in bankruptcy.

I’ve already made my daughter a Navy Federal member, which automatically opened a savings account in her name (I’m listed as a joint owner). I transferred some of the funds there, but the remaining ~$2k is still sitting in my personal “Baby Savings” account.

Would it be better to:

• Transfer the remaining money into her savings account?
• Open an ESA or 529 account?
• Leave it where it is and disclose it?

I’m not trying to hide assets, this money was genuinely gifted for her and intended for her future. I’m just trying to do the right thing without accidentally creating an issue.

If anyone has gone through something similar or has experience with Navy Federal + bankruptcy, I’d really appreciate hearing how it played out. Thank you in advance.