Credit union that hold lots of my debt. Can they take my car after it's paid off?

[Leafgreen]

Hello. Facts: I have not filed for BK yet. A credit union has my car loan with 3.5 years left of payments. I have been making monthly payments, and intend to continue. Also with them, I haven't made payments on 131K Home Equity Loan, 15K on a credit card, and $7k signature loan in >1 year. The Sig. loan and HEL are still on my statements with them. However the c/c is not. They already sold it to a collection agency.

It's very unlikely that I will be able to pay their debts (along with other c/c debt and mortgage).

The Q:
Can they repo my car after it's paid off to satisfy the other debt? Is that legal?

I'm thinking if they can repo it after I've paid it off, I need to let them have it now. It will be worth about $10k in another 3.5 years.

[doni49]

Check your loan docs (all of them) and see if there's a Cross-Collateralization clause. If they do then the car loan paperwork basically basically says that the car is also security for any other loans you have with them. And the other debts' docs would say that if you have any secured loans with them, this loan is also secured by the collateral from the other loan.

Now with all of that being said, talk to your lawyer about a "722 Redemption". It MIGHT be an option for you. It basically allows you to force the lender to accept the current retail value of the vehicle as payment in full on the vehicle. The loan would be split up in to two separate debts--one being secured and the other being unsecured. The unsecured debt would then be discharged.

Of course I'm no attorney. Check with one.