Question Bike Trade In on Car

[Linchung]

First post and new here. Ok so a year ago, I bought a bike on 12 months interest free credit, paid it off 2 months ago with 2 credit cards I had with lower interest. All was well.

Today though, I am facing getting laid off from my current job in around 2 weeks, luckily I have found another job but my income will be at least $20K less!! There is no way that I will be able to continue on without filing BK.

My question is, do the credit cards that I paid off my bike with have any hold over it? Can they repossess my bike which is my only form of transport right now.Can I trade it in on a used car without repercussions from the credit cards I paid it off with? Thank you in advance for any info.

[SMinGA]

They cannot repossess the bike - the credit card companies don't have a security interest in the bike. I imagine you own the bike, have the title free & clear?

The issue you may have: you should perhaps continue making some form of payments on those 2 cards for as long as possible. You just put a hefty amount onto them, and if you file BK now they could contest the discharge of that debt. And possibly win, though you'd have the recent discovery of the $20k income loss on your side to try and show you did not have bad intentions.

[Linchung]

Thanks SM. Correct, I do have the Title free and clear, I was thinking of trading it in against a very cheap car. My wife doesn't want me to in case the Credit Card companies come after us for the amount.