Credit Unions

[Summerbreeze]

Hello Everyone,

I'm new here, I have been reading post all day, very helpful information! I plan on filing ch. 7, I would like to keep my car that I financed through the credit union but include their credit card, do you think I will have a problem doing this? I haven't call an attorney yet, plan on doing it this week, want to get started as soon as possible, I haven' missed any payments yet, but I'm dying in debt!!!! Can you keep one of your credit cards in chapter 7 or is just better to start all over? My American Express has the lowest balance, about $1700, which is really not that low, but I was think If I keep it I would have one to start rebuilding my credit.

Have anyone used Legal Helpers to find an attorney, or do you know a good attorney in the Las Vegas area?

Thanks for your help

[lrprn]

Welcome to BK Forum, Summerbreeze - glad you found us!

I plan on filing ch. 7, I would like to keep my car that I financed through the credit union but include their credit card, do you think I will have a problem doing this?

People file and keep cars financed by their credit union but include the credit card issued by their credit union all the time.

Unfortunately you won't get to decide which bankruptcy chapter to file - how you come out on the required Means Test and Schedules determines that.

Can you keep one of your credit cards in chapter 7 or is just better to start all over? My American Express has the lowest balance, about $1700, which is really not that low, but I was think If I keep it I would have one to start rebuilding my credit.

Sorry to be the one to tell you this, but you must include ALL debt when you file - you can't pick and choose what to include. American Express is not bankruptcy-friendly - your card along with all the others will be gone as soon as the companies get notice you filed.

It's important to break old financial habits. Now is a good time to start planning how to live within what you make for awhile to get used to living without the credit card crutch. Otherwise it's all too easy to fall back into old bad habits and find yourself right back in the financial ditch again.

Have anyone used Legal Helpers to find an attorney, or do you know a good attorney in the Las Vegas area?

Do a search for Legal Helpers here in the forums - you'll find some past members who used them.

It's against our forum rules to provide recommendations or discourage use of individual lawyers here in the open forums. However, if a member wishes they can send you a private message with that information.

[keepmine]

As to the CU issue.
It depends on if you have a cross-collateralization agreement with the CU. If so, they don't have to let you keep the auto unless, you agree to reaffirm the credit card.
Pull out the papers you signed hen you opened the CU axxount.

[magyar123]

Credit unions have the right to cross-collaterize - steal your funds that are in your checking/savings accounts if you include one of their credit cards in a Chapter 7 filing. As far as the car loan is concerned, you can keep on making timely monthly payments, but you should be making those payments at the branch, as they will NOT send you monthly statements/payment cpupons anymore.
Just before you file close out your checking/savings accounts at the CU except for the initial membership deposit. And also remember - even if you keep on making timely payments towards the car loan your payments will not be reflected on the credit reports.

[Summerbreeze]

Thanks everyone for your response, magyar123, I pay my car note by transferring money from my Washington Mutual account to my credit union savings account they give me a lower rate if I do the electronic payment. I plan on trying to contact an attorney this week for a free consultation, I'm well below the means test for 2 people, I don't own any property, so I'm hoping for Chapter 7. My credit card with the credit union is close to $5000, I don't want to have to keep that debt but at the same time I have to have a car.

[ThreadsSnapping]

I plan on filing ch. 7, I would like to keep my car that I financed through the credit union but include their credit card, do you think I will have a problem doing this?

You might. If your credit union cross-collatorizes they may not release the title to the car until all debts owed to them are paid, including the credit card. I would go over my car loan and credit card agreements very carefully to see if the cross-collatorize. If there is anyway for you to refinance the car anywhere else, I would do so as soon as possible.

[cetiya]

I used Legal helpers, and even thou my lawyer was a wee bit slow on getting things done, on the whole I was satisfied and everything went smoothly. but i had a very easy, non-complicated case.

[Stilltheone]

American Express is not bankruptcy-friendly - your card along with all the others will be gone as soon as the companies get notice you filed.

I just wanted to say you ain't kiddin'! When I filed, I had a credit card balance of $5000 on my American Express....maxed out. Once they received noticed, they went out of their way to send me a letter to state that they "canceled" my account....Gee...ya think? It was maxed out anyways, who cares?

[Summerbreeze]

Do I have to stop using my credit card at least 90 days before I file? I haven't missed any credit card payments yet but if I pay them I won't have enough money for the other things like food and gas, I have had to charge my car insurance because I didn't have the money, after I paid all my credit card bills. I feel so embarrassed typing this, even though nobody here actually know me it still is so embarrassing.