Credit Union Auto / Credit Card Question

[dbryant]

I'm new to this forum, and so far i have found a LOT of valuable info. Hopefully someone can help me with this.

We have a credit union for 10 years, and we purchased a car in Aug 07. We owe about $31K, it's worth about $26K based on KBB. We also have a credit card and owe about $10K on it.

We are way over our head due to the down housing market.

We are in the process of short sale / foreclosure.

We would like to keep the car, but not the credit card with the Credit Union.

After reading about cross collateration, re-affirm, i am very confused.

I do not see any croos collateration clause in my paper work, but i could be missing it. What would the term actually used be? I am searching the documents, but don't see those words.

I am tempted to just do a "ride through" on the car, even though i can see in the paperwork that they will close the accounts.

I have a family of 4, and 1 on the way, so we need this car, as i wont be able to afford another car to haul my 4 kids, wife, and dog around town.

We are going to file in the next few days. My atty says that i can re-affirm, but i dont want the CC. I may need to call him and find out more info.

Would my credit union give me this info without gettting them upset and doing something to my accts now? My other CC companies have already dropped my available credit down to what i owe. I have $0 available credit.

Please help me out.

[drowninginflori]

We belonged to a credit union for over 15 years and had our car, two credit cards, and a small loan with them. We filed a chapter 13 in July on the cards and the loan and had planned to reaffirm the car. However, we were forced to include the car in the bk13 amd pay it within the pay back because even though we were up to date on the car they actually went as far as sending someone to take the car (we live on a military base so they could not get in). This was all due to cross-collateralization. I did not remember seeing anything about this in our loan paperwork either but it definitely existed. Also, we had to change to a different bank because anytime there was any money in that account they would clean it out. This is not to say that all credit unions do this but ours did and it is a pretty big credit union that serves the military.

[DadTL]

My credit union of 20 years told me to reaffirm everything or nothing. We have 2 car loans, 1 sig loan, 1 heloc on a rental. We tried to reaffirm 1 car. They can have that back too....

[Cali]

I've never heard of a CU letting you keep one thing and BKing another.

[dbryant]

I contacted my Credit Union today, and asked them some general questions. I was transfered to their BK dept. I did not give them my name or acct info (just playin it safe) I told them that i have a CC with them, and a car loan. I said i wanted to keep the car, but not the card. He said that i would just need to send my BK file #, and they would send me the affirmation paperwork for the car. I asked if the CC and loan were cross-collateralized, and he said no. When i file, the CC will be gone, and i will just have the car, as long as i stay current on payments. Title will be issued when the balance is paid in full, no strings. I was told that this CU does not link the 2 accounts, and that they would close the checking / savings / credit card account after the CC was discharged.

We are going to meet with our lawyer this week and get the ball rolling. Can't wait to be done and move on. My wife and I are not going to make the same mistakes again. Cash or NOTHING!!!

[PoorGrammyinBK7]

[QUOTE=dbryant;187031]I contacted my Credit Union today, and asked them some general questions. I was transfered to their BK dept. I did not give them my name or acct info (just playin it safe) I told them that i have a CC with them, and a car loan. I said i wanted to keep the car, but not the card. He said that i would just need to send my BK file #, and they would send me the affirmation paperwork for the car. I asked if the CC and loan were cross-collateralized, and he said no. When i file, the CC will be gone, and i will just have the car, as long as i stay current on payments. Title will be issued when the balance is paid in full, no strings. I was told that this CU does not link the 2 accounts, and that they would close the checking / savings / credit card account after the CC was discharged.
QUOTE]

Just wondered what state that credit union is in?

[reb512]

I filed against a CU and I was told by my attorney that all CU's do cross-lateralization(sp) Maybe someday I belong to another one, but who knows. my money is safe regardless

[dbryant]

My CU is in California. Unless the CU was lying to me, this is what he told me. For my sake, i hope he is was not lying. Either way, we want to keep the car, as we know that after, we wont be able to get something that fits our needs. With my wife and 3 kids (soon to be 4) we need a vehicle that can seat us all. We had no intention of filing when we purchased the car. Worst case, i guess i get to keep paying on the $6K CC i have with the CU as well. Thats the least of my worries

[Cali]

dbryant - I live in CA and my attorney told me that CU's do cross collateralize here.