Credit Union Questions & Car

[joyoflivin]

Hi-we just retained our atty for a chptr 7 last Friday. Here is my dilemma and hopefully someone can shed some light...
I just purchased a new car last month, I haven't made the first payment yet, it's due 6/8 from our Credit Union. Our atty says because of cross/collateral I am going to have to pay back our line of credit with them 10K and we also have a home equity with them.
I really want to throw the line of credit in too so I was going to go and trade the car in for the same car @ another dealership but maybe get a newer one so it doesn't look to weird. This one is a 2008. That way the credit union will not be able to take the car if we put the line of credit in. I have to do this before the end of the month because that is when I will be reported 30 days late (as of May 1st I was current with everyone). Whadya think? Possible or could I get screwed somehow?
Thanks
JL

[keepinitreal]

Seems like that would work.

We were in the same situation. We decided to buy another car, and after that we voluntarily surrendered our old car to the credit union. The credit union told us if we wanted the car back, we'd have to pay the car loan plus the unsecured line of credit because of cross-collateralization.

They eventually sold it at an auction so now we owe unsecured debt only, which will be discharged by our upcoming bankruptcy.

Good luck on whatever you end up doing.