Can CU refuse car payments?

[alltappedout]

Yikes!
Just read where a bank refused to take car payments from someone in bk. Can they do that? I'm current with the car (load renegotiated in May -- only $1900 balance, value of $6-$8,000) but have stopped paying a cc held by the credit union who financed the car.

Thanks for any insight.

[JustFileSuit]

Your information is a bit sketchy. Are you in a BK? What chapter? Did you reaffirm the contract? Note that since you have a cc with the cu, they can take your funds from your account and put it towards either obligation if you are not before the BK court. And the cu can also file suit and probably eventually seize your auto to repay the cc debt, unless it is discharged in BK.

[alltappedout]

Hi
not in bk yet. I'm about 3 mos. pst due in cc that is now up to $7k. Current with the car payments with only $1900 to go to own. I will be filing ch 7 soon once I get all the income, expenses and assets numbers together. Little or no assets. No job and getting unemployment benefits. Don't own a house. Ordinary personal property not worth much. The car is the biggest asset, worth about $8k according to kbb, which I plan to exempt under System 2 in Northern California.

[GotNoMoney]

DO NOT use KBB as a guide for the value of your vehicle, google "black book" value or drive around to three budget used car dealers with your car in its normal (uncleaned, dirty current condition) and ask them what they would pay for it right now you need the money. That is your current value of the vehicle. Other choice is to get your local auction print out for the last 60 days of the amount your car in similar condition and mileage sold for at auction. Most dealers of medium to large size have access to this info. The data base tracks all vehicles sold from local to across the USA and Canada.

And yes a Bank or CU at anytime can refuse to accept anything less than full payoff, all they have to do is accelerate the note to full payoff.

[alltappedout]

Thanks GNM for the advice on car value as kbb valued the Jeep at $8000 retail, i.e. at retail used car price. So I definitely appreciate your strategy.

I definitely am feeling the pressure to get a bk on the books since I do want to keep the car, if for no other reason than to trade-in and get a more economical and gas efficient vehicle, if possible. This Jeep has been good but has 118k miles and some work to be done including brakes all around and some other stuff that will likely cost $1500.

[debtinohio]

I don't know of any 118K mile jeep worth 8K, follow the above advice and get the black book, or quick sale/trade in value in fair condition.

[alltappedout]

you're right...black book gave me a value around half of that. Range: $3310 - $4900. Seems much more in line with what I would expect. I think kelly blue book stated that their price was based on "excellent" condition because a dealer would repair and detail the car to put it up for sale. But of course, mine is not in excellent condition and I need a value more in line with my keeping the car and getting it reaffirmed in bk.