So I'm in the talks with a lawyer about filing chapter 7.
I have a credit card, and an auto loan through PenFed.
He told me I should just let the vehicle go, and get a different vehicle either post bankruptcy or get one now before and reaffirm.
But it's because he's not sure how PenFed will treat the auto loan and credit card as far as cross collatoralization.
Does anyone have experience with this? For starters, I would love to keep my vehicle. But I have to include the credit card because it's really high payments to get it back to current etc...
I'm not sure how to proceed and it's the biggest thing holding me back from filing right this moment. We have another vehicle but it needs lots of repairs.
Plus, once I file, IF I include the auto loan and do not reaffirm will it show as a bankruptcy AND a reposession on my credit reports?
Can you share the results with penfed? I am also in the same boat with penfed with a cc and auto loan and I am curious what happen.
Sorry I never updated this. I never pulled the trigger on filing for Bankruptcy. I'm still really exploring my options right now.
I worked at penfed in their collections dept. If you file bk that's the only thing that should show on your credit, it won't then show a repo. I let my cars go because the ltv was horrible and it also just shows them as Included in bk. If you've got a cc with them they may or may not be able to cross collateralize them. It depends on the situation with the loan terms. You should call and ask. If your car loan is also upside down w ltv you can ask them to negotiate the loan balance down to market value because for them it's a LOT of work to pick up a car they really don't like doing it. If you cause them a loss you won't be able to use them ever again until their paid off. Also I would wait and ask questions till after you file or move any money you have out of their grubby hands because they will offset it if they get wind of you filing and close any open lines of credit. The manager of the area that does the repos is a B and the two girls they have doing repos are ridiculous.. So if you don't get what you want ask to talk to the manager. (Mod cut-please no real names here)