Car Loan and Credit Unions

[mand15]

Filing a ch 7 and wanted to reaffirm my car loan. have 3 loans with credit union --2 unsec and 1 car. the cu has told me in the past if i don't make pmts on unsec debt, they will repo the car because they are cross collaterolized.

what happens if i file and try to reaffirm car loan. will they repo it? i was never informed that my loans were cross collaterolized (sp) and don't know if this is a scare tactic or what. they tried to "help" by saying they could package all 3 loans together with the same pmt i'm making on my car for a 60 mo term. i thought this would make it worse because then the full amt is considered a secured loan.

[AngelinaCatHub]

They are absolutely correct. C.U.’s can do this and they do. You can attempt to ride through, but if you do not pay all three, they will pull the car. I think if you want the car, they are offering a good deal. But, you are stuck with the payment after discharge as the reaffirm excepts it. ‘Hub

[StartingOver08]

If you want the car, you can most likely negotiate the cross collateralization off the repayment - so you just end up paying back the car. However, in order to do so, you would need to sign a reaff with the cross collateralization specifically removed in the agreement. BTDT

[mand15]

does it matter that i'm upside down in this car?

105000 miles on a 2004 accord. they're better off letting me pay the car off because they won't get what is owed on the car.

[StartingOver08]

The lenders do not use logic at all!

So, you can start off in your statement of intentions that you want to reaffirm the vehicle (if you decide you want to) and then negotiate with the BK dept terms that are acceptable to you. If they will not meet your terms, just surrender the car. You have to file a motion to surrender. If you do it this way, the car payment as of the date of filing is in your budget - if you surrender then it is out of your budget. It is a strategy.

However, you need to ask yourself - is it worth keeping? Check auto trader - you can get some really good car deals now for less than $7000.

[mand15]

is auto trader online?

[StartingOver08]

Yes. Check it out: http://www.autotrader.com/

There are other sites too.

[RainMoM]

Cars.com is a good site to find cars as well