A situation seemed to pop up today, and I'm not sure how to react. One of my large creditors (a large credit union) of whom I owe about 60K in total to on 3 separate lines of credit / credit cards and am just over 30 days past due brought up the fact that i also 'owned a car with them'. The car they are speaking of is a loan I co-signed for someone 3-4 years ago when times were good. That person has made all payments on time.
I know that the CU can cross collateralize assets....but I am wondering if they can on an asset that I merely co-signed for. Whether or not they would actually repo a car that the payments are being made on....which is probably not worth more than the 5-10K that is owed on the car, is a different story. Thoughts on their security interest in this co-signed loan?
And I guess while we are on topic...in a chapter 7, by listing this CU, and having my name removed as a responsible party, does that kill the cross collateralization? Sounds like it would.
I know that the CU can cross collateralize assets....but I am wondering if they can on an asset that I merely co-signed for. Whether or not they would actually repo a car that the payments are being made on....which is probably not worth more than the 5-10K that is owed on the car, is a different story. Thoughts on their security interest in this co-signed loan?
And I guess while we are on topic...in a chapter 7, by listing this CU, and having my name removed as a responsible party, does that kill the cross collateralization? Sounds like it would.
Closed November 2010
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