Auto loan and CC with CU

[tazzy20176]

I'm reading that if I have a credit card and auto loan (i've never been late) and I want to include the CC on the Chapter 7 but keep my car, the CU can take my car from me?

[TEW]

CU work differently then banks if you have a CC and a car loan they can cross collateralize the car loan with your CC’s and if you are filing you stop paying the CC’s

[AngelinaCatHub]

TEW is probably more than right. I had to reaffirm two debts to keep my auto. It is no big deal, if you can afford it. But you are stuck with it if you cannot afford it. Check into this. 'Hub

[tazzy20176]

So should I refinance the car with another bank or try to get a new car before I file (in 2 weeks)

[TEW]

if you can get a loan. most people that are filing are going to have a hard time witha refi.
is the car worth it? is it upside down most are. do you have a lawyer?

[tazzy20176]

oh, and the CC that I have with CU is $15,000 with a minimum payment of $450. So I need to get rid of that in my Chapter 7.

[tazzy20176]

I have a lawyer and will be contacting him on Monday. I've only had a consultation and don't think he knows that the car and CC are with the same CU. My credit is pretty decent right now, I'm about 30 days late on one bill, never late on the car or house, but I have over $50,000 in cc bills that are at their limits.

[TEW]

you can get rid of all of it in a chapter 7
good luck keep us posted

[magyar123]

In 2004 I included my CU car loan and a cc with them. Both were ultimately discharged, I had to list all debts, but since I wanted to keep the car just kept on making timely regular monthly payments without actually reaffirming the car loan.
Of course that was in 2004 - good old bankruptcy times.

[Blue14]

We have a car and (had) a cc with a Credit Union and they wanted us to re-affirm both the car and cc just to keep the car. We decided not to re-affirm just in case something happened where we couldn't afford to pay the payment anymore and we didn't want to pay for the cc. When we were finally discharged Aug 2008, our attorney told us we could contact our CU to see when they were coming to get our car or work something out with them. The CU has agreed for us to continue making payments on the car (not the cc) without signing a reaffirmation. But if we are late on one payment, they will come and get the car.

[bcvw]

We have a car loan, 2nd mortgage, cc and LOC with our CU. I was sure that there was cross-collateralization across these loans and I would have a hard time keeping the car and the house while discharging the rest. I wrote the CU and got this response:

Dear xxxx,

Thank you for your email. I am happy to answer this question for you. Your auto is collateral only on your auto loan and your home is collateral only on your second mortgage. Your reserve line of credit and credit card are considered unsecured which means that there is no collateral on them. You may also call us if you have any further questions at xxx-xxx-xxxx. Thank you for your continued membership with xxxx xxxxx Credit Union, and have a wonderful day.

Sincerely,


Wxxx Hxxxx
Financial Specialist


I'll check with my attorney on this also.

[StartingOver08]

I hope this thread is not too old. I also have a cc, auto loan and 2nd mtg with a CU. Because of this forum (thank you!!) - when I received the re-affirmation I called the BK dept of the credit union and asked:

1) Can I have a copy of the current agreement? (answer was yes)
2) Is the mortgage cross-collateralized with the car? (answer was no)
3) Is the car cross-collateralized with the credit card debt? (answer was yes)

So, I said if that is the case "Why would I reaffirm?" Their answer was, well if you want us to remove the cross-collateralization from the agreement we will remove it. And, they asked if I wanted to stretch out the payments a little, just a few months, to reduce the monthly payment. (they are bringing down the payment amost $100/month by adding two months to the term).

I said write it up and send it to me.
So, all you CU members on this BK forum really, really helped. Thank you!