Capital One Auto Loan intact after BK even though discharge Capital One CC debt?

[caligirl3]

Is it possible to keep a Capital One Auto Loan intact after BK even though discharge Capital One CC debt?

[caligirl3]

anyone?

[startover24]

I'm definitely no expert, but our lawyer told us that if we didn't reaffirm our car loan (Chase Bank) they probably wouldn't try to take it as long we stayed current. We also had a credit card with them that is being discharged ($14,000).
I was worried about that too, but we just received our papers to reaffirm the car.

[caligirl3]

So you are not going to reaffirm the car loan, but you just got the papers to reaffirm? I'm confused... What is reaffirm? Sorry, I'm new at this. I'm letting one car go, and buying another which I will keep current. The one I'm letting go is financed through an unrelated credit union, and I'm going to let them repo it. Currently I'm current on the terms, but will discontinue paying now until I file (in 2 mos). I'm buying a new car with financing through Cap One Auto. I'm letting a Cap One cc go in the BK. Will they be able to take my car away since they're Cap One?

Do we get to choose which car we keep?

[keepmine]

Reaffirm means, you agree to keep the orginal terms of the auto loan post bk. The big downside to reaffirm is, post bk should you default the lender can still sue you for a deficiency balance.
I doubt you'll have a problem keeping the Cap 1 auto loan. They'll likely insist on a reaffirmation since the loan will be pretty recent in relation to the k filing.

[startover24]

Have you filed already?

If I understand you correctly, you have no equity in your current car and you're purchasing a second one through a bank that you have a credit card with? Sounds like you haven't filed yet?

[caligirl3]

no equity in your current car - correct (with credit union). Going to surrender this car.
purchasing a second one through a bank that you have a credit card with - correct. Capital One.
haven't filed yet - correct

[startover24]

You are talking chapter 7 right?
I think you'll be OK. Just don't reaffirm (agree to continue) the loan on your current car after you file. They'll repo it, but you won't be liable for any deficit. Reaffirm the new car loan which you'll then be liable for.
Will you have a lawyer?

[caligirl3]

Ok, now I understand. Thanks for the detail. Yes, I'll be filing with a lawyer.

I guess one question still remains: Will the new car loan be reaffirmable even though I'll be discharging cc debt from same creditor?

[startover24]

As I stated earlier, we had a cc through the same bank as our car loan and they sent me a reaffirmation for the car. We've had our car loan 2 years though. I don't know how long after you take the new loan you're planning on filing?
I'm also not sure how you're able to get a new loan if you're so sure you need to file chapter 7?

[caligirl3]

My loan came in at 8.7% current credit score is 610 and am current on all my debt. Problem is, I've had to move me and the kids back in with my mom to do so, and I'm just drowning. I'm in the middle of a divorce and he's filing for BK so feasibly the creditors could come after me alone for all the debt. I'm a single mother who owes 2010 taxes, 60k in student loans and can't afford to maintain my cc debt any longer. I need to start saving for an apartment next year instead.

[startover24]

I'm sorry. I didn't mean to question your motives.

I hope everything works out for you. It must be really tough. I've found this site an excellent source of information and compassion. I know it's help me through some pretty down days. Try to use it.

[tcreegan]

Hi caligirl,

Cap 1 is so huge these days, the cc dept might not even be in the same country as the car loan department.

What you need to know is whether the car loan and cc account are "cross-colateral" This means they are hooked together.

This is something credit unions are infamous for, but I doubt Cap 1 does it. Check w/ your attorney.

Good luck w/ it,

Tom in Colo