CU REaff.

[BKQuestion]

Curious on a Credit Union Reaff. I did sign papers to reaff a car loan which i am nowhere near upside down on. The CU only delivered papers specifying the car, however they did attach all my original signed documents and papers. Now the Federal reaff paperwork doesn't state anything other than the APR/Payment dates and nothing of cross-collateral, etc. Is this too good to be true that when i reaff they will remove the credit card which is the only other acct the CU has of mine?

Will i be freed of the CC with the CU and just repay the car loan?

My lawyer said usually the CU advises him of the client requirement to pay the CC back or repo the car, etc. but they had said nothing to him. He said that it would be highly unlikely later that they would req. payment on the CC.

Sound too good to be true?

[StartingOver08]

Well, what does the original agreement say? You said they attached that agreement to your reaffirmation - that makes me think it is buried in the agreement. Take a look to see what the fine print says before you celebrate. If it does not specify in your original agreement, then you are probably ok!

[BKQuestion]

the original agreement does establish cross-collateral. A new question would be how likely would the CU be to readjust the CC. EG 4500 line of credit and pay them 3k to pay it off outright; like a collection agency?

Also once its paid will they keep open the line of credit? and allow me to use it to rebuild my credit or do they close the line of credit?

[StartingOver08]

The time to do this negotiation is directly with the BK dept while you are in your 60 days, before you sign any reaffirmation agreement at all. If you are going to get rid of the cross collateralization, it must be written in the reaffirmation agreement. Mine was - I got rid of it and the $23k cc debt along with it. Just kept the $8k car.

As to them allowing the line to stay open - doubtful.