Can they take my car & motorcycle?????

[Cycle]

Sorry about my english!:

Ok;
I'm planning to file BK chapter 7 in a few weeks, i'm getting all the papers,info,etc & off course the money for the lawyer.

I stoped making my payments on my credit cars, personal loans, all the unsecured debts. but i'm current on my car and motorcycle payments because i'm planning to keep them.

Today i received a call from the bank who is financed the car and motorcycle but at the same time i have a credit car and personal loan behing for 6 months, so the told me they can take the car and motorcycle because of that even if i'm current on them.

Can somebody tell me if this is true, legal, etc? Or if i filed bk, it will protec me>? or any possible solucion.

Thanks for your inputs,

Sam

[newbie2]

Sorry about my english!:

Ok;
I'm planning to file BK chapter 7 in a few weeks, i'm getting all the papers,info,etc & off course the money for the lawyer.

I stoped making my payments on my credit cars, personal loans, all the unsecured debts. but i'm current on my car and motorcycle payments because i'm planning to keep them.

Today i received a call from the bank who is financed the car and motorcycle but at the same time i have a credit car and personal loan behing for 6 months, so the told me they can take the car and motorcycle because of that even if i'm current on them.

Can somebody tell me if this is true, legal, etc? Or if i filed bk, it will protec me>? or any possible solucion.

Thanks for your inputs,

Sam

Check the loan papers you signed and see if there is a clause about cross collateralization. Credit unions are notorious for this, but I'm not sure about banks.

[Cycle]

Check the loan papers you signed and see if there is a clause about cross collateralization. Credit unions are notorious for this, but I'm not sure about banks.

Yes, it is a credit union, if that is the case, they can take the car and motorcycle? Once i file my BK they won't be able to take them right?

[newbie2]

Yes, it is a credit union, if that is the case, they can take the car and motorcycle? Once i file my BK they won't be able to take them right?

You really need to do a search here in this forum for "credit union and cross collateralization". Credit Unions are quirky. They put those clauses in the contracts that basically say that if you default on one loan then it's a default on all. They (most of them) then want to take your secured items to help pay for the unsecured that you have defaulted on.

Talk to your lawyer about this. He/she will know best how to advise you and what you can do to keep your secured items.

[StartingOver08]

One of the options you might consider is a reaffirmation agreement.

Find out the actual market value of your car and motorcycle. The reaffirmation agreement can frequently be negotiated directly with the CU BK department. Know your accurate loan balances, be aware that sometimes the CU will add additional amounts to the loan because of the defaulted unsecured debt (cc). Mine tried that and I was able to have them remove the additional amounts. Not all CU's or banks will negotiate so be prepared to surrender or redeem if your CU is uncooperative. Do NOT consider a reaffirmation if your income is uncertain or your employment is at risk. After all, BK is a fresh start and if you start off with debt, it will make your fresh start that much more difficult to attain.

Protect your deposit accounts. If you still have your checking and other deposit accounts with the CU, it is time to move them out to a neutral bank or another neutral CU. Download all of your statements for every account before you close your CU deposit accounts so you have the info before you file.