credit union auto loan

[freshstart2006]

I posted a few days back about my problem. I am a member of a credit union and have my auto loan and a credit card through them. When I filed, they asked me to sign a reaffirmation agreement to include the credit card balance. They did cross colateralization.

I looked into the 722 redemption, but the payments will be too high for me to afford with an interest rate at 24%.

My grandparents are going to loan me the money to pay off the auto loan. My question is this: If I pay off the auto in full before my bankruptcy is discharged, will they have to release the lien on the car title? I am not paying off that credit card too.

[lrprn]

I posted a few days back about my problem. I am a member of a credit union and have my auto loan and a credit card through them. When I filed, they asked me to sign a reaffirmation agreement to include the credit card balance. They did cross colateralization.

I looked into the 722 redemption, but the payments will be too high for me to afford with an interest rate at 24%.

My grandparents are going to loan me the money to pay off the auto loan. My question is this: If I pay off the auto in full before my bankruptcy is discharged, will they have to release the lien on the car title? I am not paying off that credit card too.

A couple of questions first....Did you sign the reaffirmation agreement? What chapter did you file (7 or 13) and when?

[freshstart2006]

I did not sign the reaffirmation agreement. I filed chapter 7 pro se on 11/6/06. Had my 341 on 12/6/06 and am awaiting discharge.

Thanks!

[SinkingFast]

CU's tend to have Cross Collateralization statements in the fine print of all their products and services. Your checking acct is tied to your savings, is tied to you overdraft priviledge, is tied to your CC, is tied to your car. You may not be able to pay off the balance due on the car and get a free and clear Title. It just may not be that simple. Depends on the CU and the wording of your accts you have with them.

So you need to check on that first. Pull out those docs and read thru them very carefully.

If you are able to pay off the car and clear the lien on the Title,.......... Rather than have your Grandparents "loan" you the money, have your Grandparents pay the CU directly themselves on your behalf. Don't have that money flowing thru your Bank acct. It may be something you'd have to explain to the Trustee later. Money in,...... Money out. Where it came from, where it went to.

Another thing to consider tho, is your Vehicle Exemption. Are you gonna have enough Exemption to cover 100% equity in your car??

[freshstart2006]

I know that the they did list the cross collateralization on the security agreement that I signed. I just think it is unfair that I have to pay the blue book value on my car. The car does not run that great, and is not worth $4000. The only reason I want to keep it is because I cannot afford an expensive payment right now.

I am sure that exemption covers 100% of my equity. I am just hoping that if I pay the auto off in full, that my credit card balancee will get discharged with the bk. Thatnks for the advice, I'll have my grandma make the check directly to the credit union. I just hope they release the lien.

[no_it_all]

I just think it is unfair that I have to pay the blue book value on my car. The car does not run that great

Ok, so how come you have to pay the "blue book value" of the car and not what you owe on it? Second, if it doesn't run that well, why buy it from the credit union in the first place? Couldn't grand ma and pa lend you money for a different, better running automobile????

[HHM]

Call their bluff. Reaffirmation agreements are first and foremost a negotiation. Tell them you will only accept a reaffirmation for "x" value of the car, or they can have it, and have all the debt discharged. In essence, go tell them to "F" themselves. I think you might get some movement on their part.

As no it all pointed out, if you have family willing to lend you some money, go buy another car with it.

[freshstart2006]

Yeah, that is what I will do. Go down there with the cash to pay it off and say accept it and give me the title or keep the piece of crap car AND the credit card debt.

The only reason I want to keep it is that it will actually be a slightly better car than the other options out there for $2500. Plus I just put new tires on not that long ago, etc. But since credit unions usually list their repossessed vehicles for sale on their website, etc, I know this car won't sell for $4200. Actually the other day I run into the edge of my garage and knocked the passesger's mirror off too. Whoops!

Thanks for the advice everyone

[manola]

I run into the edge of my garage and knocked the passesger's mirror off too. Whoops!
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[banmark]

I run into the edge of my garage and knocked the passesger's mirror off too. Whoops!

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