I have 4 loans through 1 bank and plan on bankruptcy, can they repossess my vehicle with them even if current on payments? 18 Answers as of August 13, 2013

I have four loans, all with the same credit union. Two are credit cards, and two are vehicle loans. I plan on filing bankruptcy soon on both credit cards and one of the vehicles, but I want to keep one of the cars. The payments are low and affordable, and I'm completely current and caught up on it. Can they still repossess the car that I'm current on?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Thomas C. Phipps | Thomas C Phipps
They shouldn't repossess it if you are current on the payments. You can read the loan documents to make sure what they have to do to repossess the vehicle.
Answer Applies to: Missouri
Replied: 8/13/2013
Richard L. Hirsh, P.C. | Richard L. Hirsh
It is possible that the lender could repossess the vehicle even if payments are current unless you reaffirm that debt. However, most auto lenders do not seem to repossess if the payments are current.
Answer Applies to: Illinois
Replied: 8/8/2013
Hayward, Parker, O'Leary & Pinsky, Esqs.
Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
Credit unions loan documents typically contain "cross-collateralization" clauses, which essentially provide that the collateral for one loan serves as collateral for every other loan that you have with the credit union. If this is enforced by the credit union (and there is no reason to suspect that they won't), the vehicle that you are "current" on could be repo'd if both car loans are not paid.
Answer Applies to: New York
Replied: 8/8/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Credit unions typically "cross collateralize" their loans, meaning the car is secured by the credit card debt. You need to have a lawyer look at the paper work.
Answer Applies to: California
Replied: 8/8/2013
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
You should consult with a lawyer. The answer will depend upon the situation.
Answer Applies to: Colorado
Replied: 8/8/2013
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    Many credit unions have "cross-collateral" agreements. This means that all loans are secured by all other loans. So your credit card or signature loan might also be secured by the car. You should consult an attorney and discuss possible chapter 7 or chapter 13 in light of the possible cross-collateral agreement.
    Answer Applies to: Florida
    Replied: 8/8/2013
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    When it comes to credit unions, are the loans cross-collateralized? If so, that would play a role in the answer of your question, where the credit card balances would be added to the auto loans.
    Answer Applies to: Florida
    Replied: 8/8/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    No, as long as you re current, remain current and sign a reaffirmation agreement with the credit union.
    Answer Applies to: California
    Replied: 8/8/2013
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    You can reaffirm the loan that secures the car unless they cross collarealized the loans.
    Answer Applies to: New Jersey
    Replied: 8/8/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Credit Unions cross collateralize themselves and can insist on repayment of all debts before releasing title.
    Answer Applies to: New York
    Replied: 8/8/2013
    Moffa & Bonacquisti, P.A.
    Moffa & Bonacquisti, P.A. | John A. Moffa
    Credit unions are a BIG problem.
    Answer Applies to: Florida
    Replied: 7/31/2013
    Michael B. McFarland, P.A. | Michael B. McFarland
    It may depend upon whether the credit union is cross-collateralized on the vehicles. An experienced bankruptcy attorney should be able to tell from the paperwork on the loans whether he can reaffirm on just the one vehicle. He may also be able to restructure the debt through a chapter 13. Again, the best option is to get a consultation with an attorney before things get worse.
    Answer Applies to: Idaho
    Replied: 8/8/2013
    Portland Bankruptcy Law Group
    Portland Bankruptcy Law Group | Christopher J. Kane
    Credit Unions often have a "cross-collateralization" clause in their contracts. If this clause is in the contract for one of the car loans (it is probably in both car loan contracts), then the car that is collateral for that loan is also collateral for the credit cards and any other debts you owe the credit union. That means that you will not get the title to the car until all those debts are paid in full. And, if you default on any of those debts the credit union has the right to repossess the car. In some circumstances, if you have had the car loan for long enough you might be able to "cramdown" the credit union debts in a Chapter 13 bankruptcy, where you end up only having to pay the credit union the current market value of the vehicle.
    Answer Applies to: Oregon
    Replied: 8/8/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When you have a car loan with a credit union, all your other loans are tied together under a policy called "cross collateralization." To keep the vehicle will require that you pay off all loans to that institution to obtain title to the vehicle. The credit union may not repo the vehicle, but do you really want to pay off a vehicle without being able to obtain the title?
    Answer Applies to: Nevada
    Replied: 8/8/2013
    Law Office of Robert Sisson | Robert Sisson
    You should be able to reaffirm, however I need more info to give you a correct answer.
    Answer Applies to: Wisconsin
    Replied: 8/8/2013
    Law Office of Susan G. Taylor
    Law Office of Susan G. Taylor | Susan G. Taylor
    Credit unions consider all accounts cross-collateralized. Yes, they can take your car. Best to refinance it with someone else before filing or sell it.
    Answer Applies to: Texas
    Replied: 8/8/2013
    Danville Law Group | Scott Jordan
    You will need to list all assets and debts. This is important! As long as you are current and continue making your payments for the vehicle, the bank will have no reason to repossess it. Make sure you state that you intend to retain the vehicle in your Statement of Intent.
    Answer Applies to: California
    Replied: 8/8/2013
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney