You could also have car finance with credit union. Or a charge card.

You could also have car finance with credit union. Or a charge card.

If you believe that the situation is serious sufficient that you might have to start thinking about filing a bankruptcy, you ought to avoid taking out fully loans with credit unions. The reason behind the reason being all credit unions cross collateralized their loans.

Cross collateralization? More legalese! (Sorry- you must know these items.)

Cross Collateralization is legalese when it comes to procedure through which credit unions connect the security they will have for just one loan to all the of this other loans or charge cards you might have using the credit union.

Example:

You’ve got car finance along with your credit union, and you also have to borrow funds. Pay a visit to the credit union and obtain that which you think can be an “unsecured loan.” If, later on you will need to register bankruptcy, you will see that the “unsecured loan” is not necessarily unsecured. The unsecured loan is additionally guaranteed by the vehicle.

Therefore, you will have to pay the unsecured loan as well as the car loan if you want to keep the car and are filing a Chapter 7. „You could also have car finance with credit union. Or a charge card.“ weiterlesen