Another CU question - auto loan

[becky20]

So dh and I filed 13 in July 2008. Had a 2nd mortgage, credit card and 2 car loans with a local CU. Cramming two car loans (over 910 days old) and atty's are STILL, one year later, fighting over the value. Question is, after our 13 is dischaged, what will happen with the autos? 2nd mtg (house turned over to the bank) and credit card were included in bankruptcy, and cars will be paid off by the end of the plan. So what will the CU do with the title? Will they turn it over to us? Or can they fight, even with the discharged bankruptcy, and say that the credit card and 2nd mortgage are STILL secured with the cars? My atty (the paralegal actually) thought we may have to take them to court to get the titles but felt that ultimately we should be able to get them, but she's no longer with the firm and I'm curious as to others experiences...


BTW, we didn't feel like buying 2 new cars would really be an option when we filed - our credit was already so shot and if we had been able to get approved, the rates would've been ugly. We're paying $522 a month and it includes our two car loans - I'm guessing we would've been easily at twice that amount if we tried to replace them before filing.

[lrprn]

Credit unions are notoriously difficult to work with during bankruptcy. Sorry to hear that your lawyer and the trustee (or is it a lawyer with your CU?) haven't been able to come to a conclusion. However, it isn't at all unusual for this legal wrangling to go on in some cases for quite a while after filing - see my signature so you won't feel like this has only happened to you - it hasn't.

Frankly you'll just have to let the lawyers fight it out. You can't control how long this process is going to take. Eventually they will decide they can't resolve the problem, file briefs with the court explaining each of their sides, and then your local court bk judge will get involved and make a final decision.

Just keep making your payments on time - it's the only thing you have any control over in this situation. You might contact your lawyer once a month to find out if any progress has been made and get an update. Otherwise, just sit tight and wait for the legal wranging to end.

Since at some point the car values will be resolved, when your case ends successfully with a discharge (yay!) both car titles should be turned over to you. If your CU even then tries to cause trouble about the cars, get your lawyer involved right away because they are blatantly violating your discharge. Bk judges take a very dim view of that