Legal Question in Bankruptcy in Virginia

If I have two auto loans and a second mortgage with a credit union and I file bankruptcy and only want to re-affirm the debt on one auto loan and the second mortgage and turn in one of the vehicles will they default the other loans and request payment in full?


Asked on 2/11/10, 4:31 pm

1 Answer from Attorneys
David Saiki Law Office of David M. Saiki

Good question. If you have multiple loans with a single lender, a cross-collateralization clause can make several separate items of collateral collateral for a single debt. You appear to be talking about the converse situation.

Note that you will not need to reaffirm the real estate debt. You can discharge that and keep the property provided you stay current. You will need to reaffirm the vehicle debt to keep those, though.

I will need to see your loan docs to give you a better answer. See my website below and call so we can meet. Free initial consultation.

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Answered on 2/16/10, 4:50 pm


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