Is this going to cause trouble

[allgoingwron]

Ok so my husband goes to sign the papers for our newer truck loan and come to find out the bank that wound up financing us is Chase. We have our two biggest cc's with Chase and we did not make the payments this month and planned on stopping our payments all together since we decided to file for BK.

I'm actually quite surprised that they would finance us given the fact that our cc's with them are currently on their BLP program. I'm hoping this doesn't mean we will have to push out our filing date since we are over the median and just qualifying for chap 7. My DH, may get a raise is April and that might push us over the edge into 13 territory. Thoughts?

[AngelinaCatHub]

Ok so my husband goes to sign the papers for our newer truck loan and come to find out the bank that wound up financing us is Chase. We have our two biggest cc's with Chase and we did not make the payments this month and planned on stopping our payments all together since we decided to file for BK.

I'm actually quite surprised that they would finance us given the fact that our cc's with them are currently on their BLP program. I'm hoping this doesn't mean we will have to push out our filing date since we are over the median and just qualifying for chap 7. My DH, may get a raise is April and that might push us over the edge into 13 territory. Thoughts?

HEY, that's the least of your problems. Make sure you are not cross-collateralized. If you are, you will never get a clear title till you finish off the CC's. B careful. 'Hub

[allgoingwron]

Yikes! How do I find this out? Is it in the fine print somewhere on the financing contract? How does it reference it in the contract, does it use the term cross-collateralize in the contract?

[allgoingwron]

Here's what I could find in the contract pertaining to default on other accounts...

Default. You will be in default if:

You fail to pay any amount under this agreement when it is due.
You fail to do anything you agree to do or do anything you agree not to do under this agreement.
Any person seeks to garnish or attach any money we hold on deposit for you or we otherwise owe you.
You are in default under any other agreement which you owe us money.

If you are in default, we may declare the entire unpaid balance due and payable immediately at any time without notice to you. If a petition for relief is file by or against you as debtor under chapter of the federal Bankruptcy code, the entire unpaid balance will automatically become due and payable immediately without any further act or notice.

So what does this mean exactly? That if we default on our cc's with them or file BK they will just repo the truck if we don't pay the balance immediately? Is this a common practice even if you're not behind on the vehicle and plan on keeping it?

[allgoingwron]

So from what I've been reading it's not likely that this will happen unless the loan was through a credit union. Even if worst case scenario plays out, they come and take the truck back. Am I getting that right? We didn't put any money down and haven't even made the first pmt. yet so I guess we wouldn't be out anything, except a car to drive.

Can anybody correct me if I am not interpreting this right?

[backtoschool]

Chase is a hodge podge conglomerate of banks that they acquired, and the right hand does not know what the left hand is doing. Auto loans in Michigan are done out of the former BankOne offices, and the credit card divisions are the former FirstUSA and chase offices in Delaware and New York. You are really dealng with two different banks, on some level which is good for you. I don't believe Chase does cross-collateralization, but someone can chime in if I am wrong.