BK, Auto + CC Credit Union

As some of you know most credit unions have cross collateral clauses when fincancing vehicle and extending credit card credit.

I filed Chapter 7 on 10/14 and my CU is sending me notices to pay my past due credit card debt or that they will reposses my vehicle. Is this legal?

Can they force me to keep on paying the credit card (due to a cross collateral clause) while threatening to pick up my auto. Doesn't the automatic stay cover this?

FYI - The clause specifies that if you default on any of your loans (in this case a CREDIT CARD DEBT) with the CU that they will have the right to repo your vehicle.

PLease help.

They cannot do ANYTHING during the automatic stay. They shouldn't be sending you bills or threatening to repossess your car (which they cannot do during the automatic stay unless they file for and are granted relief from the stay).

Is the CU aware of your BK case.... maybe it just hasn't caught up with their billing department??

I didn't think so. I plan on calling them and giving them the case #. I do have an attorney but his assistant never wants to put me through to him, I may go see him personally. She claims that he will never advise me not to pay on a debt after filing (now that just doesnt make sense).


They cannot do ANYTHING during the automatic stay. They shouldn't be sending you bills or threatening to repossess your car (which they cannot do during the automatic stay unless they file for and are granted relief from the stay).

Is the CU aware of your BK case.... maybe it just hasn't caught up with their billing department??