Cross Col lateralization question....lawyer was uncertain

[mintz]

I spoke to my lawyer and he was unclear what would happen in this situation, He is going to try and find out so i decided to see if anyone here knew the answer.

We own two vehicles, one we are upside down $10,000 and the other we are to the good $10,000. If we pay off one of the vehicles (the one we are to the good $10,000) does the credit Union have to release the title to us on the vehicle or will they keep it until the second one is paid off?
The CU told me on the phone that they would release the title to me within 10 business days of paying it off

Thanks

[mintz]

Has anyone ran into this situation before?

[2Bshinyandnew]

Has anyone ran into this situation before?

What do your loan docs say? Any reference to cross collateralization?

[AngelinaCatHub]

Most Credit Unions are cross-collateralized. It is possible one Title could be held for the other. Just don’t let them have a hint you are bk now. ‘Hub

[TEW]

I would get that title before i filed

[mintz]

I am planning on paying off the one car when I get my taxes back next week. The CU told me they would release the title within 10 days after they received the check. I do not intend on filing until August but my attorney advised me to quit making all cc payments now. I did make both auto payments for the month of March so I am hoping to get the title before the end of the month before another payment is due.

[StartingOver08]

If you don't get the title right away (10 days), follow up the the CU to make sure they do not 'forget' to send it to you. I had an issue once, prior to BK where I paid off the car and it took the CU 2 months to send the title - but they did not send it until I was on the phone with them to push them into action.