OH crap...would this be preferencial payments?

[roxy]

We are planning to file chapter 13 in about 2 months or so. We are behind on all CC since January. Including my Credit Union card, which is where I have our truck loan.....

I read about cross collateralization on here today, it's a new term in my vocabulary as I didn't know this existed until I got a letter in the mail last night saying that we are $678.00 behind on my visa and if we don't pay it, they will repo the truck.

My question is, if we pay this to the CU towards my visa to keep the truck is this considered preferencial payments? We're hoping to buy some time before filing. Or should we just file now? We need both vehicles for my DH and I to keep working. He works out of state an hour away.

[SMinGA]

It may be, but its nothing that you really need to worry about. It may ultimately be an issue between the trustee & your CU.

[momofthree]

How can they repo your truck when you're past due on an unsecured credit card? Am I missing something?

That said, if you file now, they won't be able to repo. Is there a reason that you have to wait to file?

[roxy]

I guess we really don't have to wait. We're just making sure this is what we want to do. Even the lawyer suggested that. They can take the truck, because the CC is through the same bank.

[lrprn]

I guess we really don't have to wait. We're just making sure this is what we want to do. Even the lawyer suggested that. They can take the truck, because the CC is through the same bank.

It's doubtful you can avoid having the truck taken for two more months. Since you've received the warning letter, then the bank's repo company is likely to be out looking for the truck soon.

Be sure to park the truck behind a locked garage door or hide it where it's out of sight. The repo company could take it from your DH's work site or a grocery store parking lot as well. Don't leave anything in it that you need, because if the truck is taken, it's very hard to get any personal items back.

File now and none of this matters because the automatic stay prevents the repo. If you can file now, I would most definitely do so to force the bank to call off the repo man.

You could pay the cc bill, but why do so if it's not necessary? It's just throwing your hard-earned money away to gain 60 more days after which you'll likely file anyway. Hardly a fair trade under the circumstances.