9 replies to this topic

[datbol]

So Im goin thru bk 7 due to bad RE investments etc. I have never been late on a auto loan n current with current car but due to cross coll agreement wit CU I might not be able to keep the car. So Im in a position where I need another car. Credit scores are crappy since bk just hit low 500s...I dont have CO's or surrenders...all car loan history is agreed and dont have an auto loan IIB. Any lenders out there? Im use to sub 5% rates and I know its gonna be sometime for that again but looking to get something respectable if at all possible. Also income is above $200k with low debt (now post bk)

[MarvBear]

If you did a BK 7 and reaffirmed the car loan, then there shouldn't be any cross collateralization.

But if you have a lot of equity in the vehicle, then you may be over the exemption $ amount you are allowed, whatever that may be in your state. You should discuss this with your attorney.

[hoapres]

It will be easier to get an auto loan after your discharge. If you are making $200K a year then you should be able to find a loan but your chances for success will be better with a down payment. Not for me to say but you might be better off saving your money for a couple of months and pay cash for a car. If you need a particular make then getting an auto loan might be the only option. If you are using the auto loan to rebuild your credit then much more cost effective methods exist.

[mk_378]

Marv is on the right track here, the judge can break up the cross-collateralization, discharging other debts with the CU, and let you reaffirm the car if its equity is less than the exempt amount. Equity is based on the "salvage" price the CU would likely get at auction which is much less than retail or trade value.

Edited by mk_378, 31 May 2011 - 09:11 PM.

[datbol]

If you did a BK 7 and reaffirmed the car loan, then there shouldn't be any cross collateralization.

But if you have a lot of equity in the vehicle, then you may be over the exemption $ amount you are allowed, whatever that may be in your state. You should discuss this with your attorney.

My attorney said that the loan docs I signed allows them to cross collaterialize my cc (included in bk) and auto loan (not included). Meaning They don't have to let me reaffirm even if I don't have excess equity and/or not behind in payments..

Thye want me to reaffirm a portion of cc debt to keep car. It's just not worth it that bad for me to keep the car.

[MarvBear]

My attorney told me just the opposite.

[datbol]

My attorney told me just the opposite.

I believe you... My lawyer doesn't seem to be knowledgeable about this. So your saying I can keep the car? I'm not behind and there is no excess equity In the vehicle.

[MarvBear]

Unfortnately I am not an attorney, nor do I know how to practice law. When I filed for BK 7, I managed to keep my automobile, and extinguish the credit card debt associated what that particular credit union. Cross Collateralization did not enter into the picture, Of course, I originated my own loan at my dealership via my credit union. I did not go to the credit unions to pick up a draft/checque. If there is a difference in that i do not know. I did a standard MVRISA executed on a a standard MvRISA in my state at my dealership, not at the credit union. I would quiz my attorney further were I you.

[mk_378]

It's ultimately the judge that decides what will happen based on the law, not necessarily what the creditor wants. If the court says the auto loan stays in force but the cards are discharged, then that's what the CU has to do.

I don't think the way of applying for the loan makes any difference. Any way you do it the cross-collateralization clause will be in there.

[grider1]

I am AMAZED you are able to get a Chapter 7 with 200K in income. I would have suspected you would have been put through a Chapter 13....