"My Car Payment Is Too High" Discussion

Upsolve Community Member
Many credit unions utilize cross-collateralization language which result in loans you thought were unsecured to actually be secured obligations. They thus require a debtor to reaffirm on both loans in order to retain the secured collateral. You might find this blog post helpful. https://www.bondnbotes.com/2016/10/03/credit-union-bankruptcy

Upsolve Community Member
You may also want to consider filing a Chapter 13 bankruptcy which, in some cases, will allow you to simply pay the value of the car rather than the entire balance owed.

Upsolve Community Member
Hi Vanessa, this article from the Upsolve Learning Center: https://upsolve.org/learn/credit-unions-and-bankruptcy/ Perhaps this may be of assistance to you. Good luck! :-)

Upsolve Community Member
Vanessa, it will ultimately depend on the credit union's policies, but it is common to reaffirm both types of loans. The article Mark suggested will give you more insight on the topic. I did just notice the article https://upsolve.org/learn/car-payment-too-high/ says this "It is common for credit cards through a credit union to be secured by your car when you also have a car loan with the credit union. While credit cards are usually unsecured, this type of cross-collateralization effectively makes a credit card into a secured debt. Due to this cross-collateralization, credit unions often won't reaffirm a car loan unless the credit card is also reaffirmed. If the credit card balance is high enough, it may be best to surrender the car."

Upsolve Community Member
Hi Quan, Yes, Upsolve will be here when you are ready. Your progress will be saved. Good Luck!

Upsolve Community Member
Quan, you might be interested in reading https://upsolve.org/learn/car-payment-too-high/ during your intermission. :) 

Upsolve Community Member
Absolutely! If you want, you might find this helpful, too! https://upsolve.org/learn/can-keep-car-file-bankruptcy/ 

Upsolve Community Member
Sounds like there's a lot involved here! This article has info on TX repo laws: https://upsolve.org/learn/texas-repo-laws/  Maybe you can get a free consultation with a local consumer protection attorney? This article has a link with some info on how to find a consumer protection attorney: https://upsolve.org/learn/how-do-i-find-an-affordable-bankruptcy-attorney/

Upsolve Community Member
Thank you!!!!

Upsolve Community Member
What likely happened was they shut down your account because you were in bankrupcity and they want a reaffirmation agreement before giving you back access. I would talk to them about regaining acess https://upsolve.org/learn/reaffirmation-agreements/

Upsolve Community Member
What Jacob said sounds probable and the link he posted should be helpful. Have you signed a reaffirmation agreement? 

Upsolve Community Member
You're not eligible for a discharge at this time. You can utilize the Chapter 13 process to restructure your debt so you can pay it off over 3 - 5 years, which may make it more manageable to do so. 

Upsolve Community Member
Oh - and you can never discharge debts that you accrue intending to eliminate them via bankruptcy. 

Upsolve Community Member
To Andrea's point above, educate yourself here, William. https://upsolve.org/learn/what-is-bankruptcy-fraud/ --- and here is an article on how often you can file bankruptcy: https://upsolve.org/learn/file-bankruptcy-twice/