Paying some CC but not others...

[auttienkassiemo]

Hubby and I plan to file Chapter 7 in Jan and Feb. Right now we are riding out our 3 months or so until we file. Our lawyer advised us to not pay our credit cards. We haven't made payments on the two highest in about 2 or so months. We have two cards that we haven't made any payments on yet as none is due because of promotional agreements. I have made payments on all the other cards and plan on making payments on the card with promotional agreements this month too. Do you think we should not make payments on the other cards? I don't want any preferential issues to come up.

[krielly]

Why are you paying ANY credit cards?

[auttienkassiemo]

Because two of them I just purchased stuff on and I don't want it to look like fraud even though the payment isn't due and second one of the credit cards goes to my credit union and I want to keep my cars so I have to pay the credit card too.

[krielly]

ok. misunderstood your post then. I thought you had indicated your attorney told you not to pay any of them.

K

[b_girl]

Did you ask your attorney what will happen to the credit union card? You won't be able to pick and choose which cards to declare BK on..they will all go. As for the other cards, I wouldn't pay but I would definitely stop using them if at all possible.

[magyar123]

Paying on some cards, but not others will look like preferential payments.

[b_girl]

That's true, but why make a payment when that CC can't survive the BK anyway? The OP needs to check how cross collateralization is going to affect the vehicles. Some members have reported that in these instances, the CC debt was tacked on to their vehicle loans. I'm just thankful we didn't have to deal with a Credit Union during our BK.

[magyar123]

That's true, but why make a payment when that CC can't survive the BK anyway? The OP needs to check how cross collateralization is going to affect the vehicles. Some members have reported that in these instances, the CC debt was tacked on to their vehicle loans. I'm just thankful we didn't have to deal with a Credit Union during our BK.

Never heard of credit unions tacking cc debt to vhicle loans. Wouldn't be surprised though.

[auttienkassiemo]

Did you ask your attorney what will happen to the credit union card? You won't be able to pick and choose which cards to declare BK on..they will all go. As for the other cards, I wouldn't pay but I would definitely stop using them if at all possible.

Yes I did and she said if you want to keep your cars then you will have to keep the credit card with the credit union.

[auttienkassiemo]

Paying on some cards, but not others will look like preferential payments.

Thats what I'm concerned about....I don't use the cards and haven't used them in about 2 months or so. In fact, I cut up all the cards, but I was just concerned about the cards that I have recently used (I.e A few months ago)that have no payment due for promotional things looking like fraud when I haven't even made one payment because it hasn't been due?

[b_girl]

If I were you, I would ask your lawyer more questions about how cross collateralization will affect your car loans with your CU. Another member of this board reported that her CU required her to reaffirm 2x the vehicle's value due to cross collateralization. She indicates she's not reaffirming the loan due to this...I wouldn't either.

[Keebler]

If I were you, I would ask your lawyer more questions about how cross collateralization will affect your car loans with your CU. Another member of this board reported that her CU required her to reaffirm 2x the vehicle's value due to cross collateralization. She indicates she's not reaffirming the loan due to this...I wouldn't either.

CREDIT UNIONS CROSS-COLLATERALIZE! Or, you should assume they do until you're proven wrong.

I've got a $5,000 vehicle with a $4,500 loan balance at my credit union I wanted to reaffirm. I also have a $6,000 VISA balance and a $800 overdraft account with the same credit union.

I called and talked with them and they told me they reaffirm all or none with no exceptions. When the reaffirmation paperwork arrived, it was ALL there for me to sign and I refused. My attorney sent them a letter trying to get them to reconsider but there hasn't been any progress.

Interestingly enough, if you could look at a typical reaffirmation agreement, you'll find that credit unions get special treatment on them.

[b_girl]

That's the exact reason why I'm glad we didn't have a CU to deal with..dealing with our bank was bad enough, but nothing like this.

[Keebler]

That's the exact reason why I'm glad we didn't have a CU to deal with..dealing with our bank was bad enough, but nothing like this.

Even after everything, I still prefer to bank at a credit union than a bank. All I've done is move my banking over to a new (better) credit union. The good still outweighs the bad. It seems to me that every bank or credit union has its own peculiarities and nobody ever pays attention to the fine print until it's too late.

[albacore44]

Cross collateral

What about cross collateral from a CC to a mortgage ?? Do they do that ?? I have Citibank for my mortgage, and several Citi credit cards.