Question about refinancing a car

[brokejoker]

We have a couple of CC's and our truck loan with Navy Federal Credit Union. If they ask us to reaffirm all debt we will refuse. Hopefully they will let us skate through just by keeping the payments current. But, I would like to refinance and cut ties with NFCU after the BK. Is that allowed?

[JackBondLove]

They will only want you to reaffirm the truck note. They realize that there is no reason for you to reaffirm unsecured debt (although they may try to tell you that you get to stay a good member of the credit union if you would pay up. )

[ugghh]

Sometimes they do cross-collateralize unsecured debt with secured debt. I do not know if NFCU does this but you may want to check.

[brokejoker]

Sometimes they do cross-collateralize unsecured debt with secured debt. I do not know if NFCU does this but you may want to check.

It is cross-collateralized. They've sent me tons of nasty grams about how they won't release title if we don't pay the cc and how they can just repo any day if we don't pay the cc. I'm not reaffirming cc debt no matter what. I just didn't know if we could refinance the truck with another bank and pay off the truck with NFCU after BK without reaffirming.

[starr4law]

Although NFCU is one of the nicer places to deal with, credit unions are like jealous girlfriends - they do not want to let you go. Like others have mentioned, there is probably a cross-collateralization clause in your paperwork. Most credit unions have them. This will create a problem when you try to "refinance" your vehicles because your balances could include the cc balances as well. You may have to talk to someone at Navy and see if they would be willing to work with you - they know the score and that you could potentially simply surrender the vehicles and they would be stuck with them.

Good luck!