Car and CC cross-collateral

[Blue14]

We have a car and cc that is cross-collateral with a credit union. We had our 341 meeting in June and now waiting for discharge end of July 2008. We are not re-affirming our car and cc with the credit union. There hasn't been a payment made on the vehicle since June, so we missed June and now July payments. Does anyone know that if we continued to make payments on this car, would the credit union still come and get it? We wanted to keep our car, but afraid that the credit union will come and get it regardless of the payments being up to date. The car also needs an oil change and rear brakes replaced, but afriad to do those things to b/c what if they come and get the car and we are out the money on it. This credit union is located out of state and many hours away from where we live too.

Thanks.

[AngelinaCat]

Well, it seems to me that since you did not reaffirm either the car or the cc, and you have not made any payments to indicate that you were trying a 'ride-through' that you might be toast. But I don't know. We reaffirmed our car and our overdraft loan because we wanted to keep them.

Someone else with more knowledge in your particular situation will need to answer.

[hnhlvr]

Isn't the point of cross-collarteral that they can take the car if you default on your other loans with that bank? You've already missed two payments, so you're not actually "continuing to make payments," you've already defaulted on the car loan. The bank won't like that!

Have you talked to your lawyer about this?

[Blue14]

Isn't the point of cross-collarteral that they can take the car if you default on your other loans with that bank? You've already missed two payments, so you're not actually "continuing to make payments," you've already defaulted on the car loan. The bank won't like that!

Have you talked to your lawyer about this?

Yes they still have the right to take the car b/c we didn't re-affirm the car and cc. This was all news to us the week of our 341 meeting (meaning we didn't know our car was cross-collateral with the cc). Our attorney advised not to re-affirm and we don't want to anyway. We wanted to keep our car without re-affirming, but we stopped making payments in June due to advise from our attorney. I just didn't know if it was worth trying to play catch up and hoping they didn't take our car. What would you guys do?

[JRScott]

If you've not paid since filing it would be hard to keep the car at this point. With the cross collateral clause I'd just let it go. Save the money and buy a used car in a month or two.

Also note if you've not paid in two months they might have the repo man come soon, they'll have to file a motion to lift stay with the court first

[hnhlvr]

Yes they still have the right to take the car b/c we didn't re-affirm the car and cc. This was all news to us the week of our 341 meeting (meaning we didn't know our car was cross-collateral with the cc). Our attorney advised not to re-affirm and we don't want to anyway. We wanted to keep our car without re-affirming, but we stopped making payments in June due to advise from our attorney. I just didn't know if it was worth trying to play catch up and hoping they didn't take our car. What would you guys do?

If your attorney advised you not to pay, then that was for a reason. He knew this would be a sticky situation. Also, if you want to keep the car, wouldn't you have to choose to reaffirm the loan when filing? The credit union probably will not agree to you picking and choosing which loans you're willing to pay off.

[Blue14]

If your attorney advised you not to pay, then that was for a reason. He knew this would be a sticky situation. Also, if you want to keep the car, wouldn't you have to choose to reaffirm the loan when filing? The credit union probably will not agree to you picking and choosing which loans you're willing to pay off.

Yes we could only re-affirm the car and cc in order for us to keep our car. But it sounds like we will have to let the car go and buy a used car in a few months or so. Our attorney said we could bring our car to his office rather than someone coming to get it from our home. We need to contact our attorney to find out when they will be here to get our car. It would be embarrassing for them to knock on the door to pick up the car.

[deafbroke]

I have a car and CC from a credit union also. We continued to make car payments and CC payments but did not reaffirm either. We still have car, CC was closed by CU.
Seems to me if you wanted to keep the car you would have had to keep current with payments even if you don't reaffirm. By not reaffirming the CC it seems the CC would be wiped out in bankruptcy regardless of cross collaterizing by CU. Not sure. But since you did not make payments, it makes no sense now to continue and you should look for a different car and let the CU come get the one you have. Then you are free and clear of both the car and CC.

DB