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Cross collateral clauses and reafirmation revisited
Holly,
If you reaffirm a cross collateralized agreement, you may be reaffirming two obligations. Just make sure the reaf is limited. You are negotiating the agreement. This is a time when I will sign a reaff. When I can get a car for 1/2 of the cross collateralized loan.
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Jan 5, 2010, at 6:21 PM, "Holly Roark" wrote:
I have asked about this before, but I need clarification about how a cross collateral clause is affected by a reaffirmation agreement, if it is affected at all.
Let's say that the debtor has a car loan and a credit card with the lender. The car loan has a cross collateral clause. Debtor signs a reaffirmation agreement that includes only the amount still owed on the car, not on the credit card. Can the lender refuse to turn over title to the debtor after the car is paid off since the credit card is still outstanding? What if Debtor signs reaffirmation agreement and judge disapproves it - can lender refuse to turn over title if credit card is not paid off as well as the car?
Assume the debtor is current on car payments and insurance.
I am just trying to somehow wriggle out from under that dragnet. I have a hearing next week on a reaffirmation agreement, which I think the judge will disapprove, but I am wondering if that is the right strategy or if the debtor is better off with an approved reaff?
Holly Roark
holly@roarklawoffices.com
Holly, If you reaffirm a cross collateralized agreement, you may be reaffirming two obligations. Just make sure the reaf is limited. You are negotiating the agreement. This is a time when I will sign a reaff. When I can get a car for 1/2 of the cross collateralized loan.Dennis McGoldrick350 S. Crenshaw Bl., #A207BTorrance, CA 90503On Jan 5, 2010, at 6:21 PM, "Holly Roark" <
I have asked about this before, but I need clarification about how a cross collateral clause is affected by a reaffirmation agreement, if it is affected at all.
Let's say that the debtor has a car loan and a credit card with the lender. The car loan has a cross collateral clause. Debtor signs a reaffirmation agreement that includes only the amount still owed on the car, not on the credit card. Can the lender refuse to turn over title to the debtor after the car is paid off since the credit card is still outstanding? What if Debtor signs reaffirmation agreement and judge disapproves it - can lender refuse to turn over title if credit card is not paid off as well as the car?
Assume the debtor is current on car payments and insurance.
I am just trying to somehow wriggle out from under that dragnet. I have a hearing next week on a reaffirmation agreement, which I think the judge will disapprove, but I am wondering if that is the right strategy or if the debtor is better off with an approved reaff?
Holly Roark
holly@roarklawoffices.com
The post was migrated from Yahoo.
I have asked about this before, but I need clarification about how a cross collateral clause is affected by a reaffirmation agreement, if it is affected at all.
Let's say that the debtor has a car loan and a credit card with the lender. The car loan has a cross collateral clause. Debtor signs a reaffirmation agreement that includes only the amount still owed on the car, not on the credit card. Can the lender refuse to turn over title to the debtor after the car is paid off since the credit card is still outstanding? What if Debtor signs reaffirmation agreement and judge disapproves it - can lender refuse to turn over title if credit card is not paid off as well as the car?
Assume the debtor is current on car payments and insurance.
I am just trying to somehow wriggle out from under that dragnet. I have a hearing next week on a reaffirmation agreement, which I think the judge will disapprove, but I am wondering if that is the right strategy or if the debtor is better off with an approved reaff?
Holly Roark
holly@roarklawoffices.com
The post was migrated from Yahoo.