Central District Consumer Bankruptcy Attorney's Association

In a credit union cross-collateralized car scenario, without redeeming a
car and having to refinance with a loan that's 15-20%, can we file a motion
in a chapter 7 to value a cross-collateralized car which would essentially
remove the security for the credit card balance while maintaining the auto
loan contract since it has a 2.9% interest rate? I understand it might be
easier to just negotiate the reaffirmation with the credit union, but I am
wondering whether there is a way to "force" them into this negotiation
other than to file a redemption motion.
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**Counsel for Chapter 13 Trustee Kathleen A. McCallister (Idaho) T (208)
922-5100
On Thu, Apr 22, 2010 at 8:47 AM, P L wrote:
>
>
> Cross collateral implies a debt secured by a lien covering two items of
> collateral, your facts describe two elements of debt secured by one item of
> collateral (vehcile). Sounds like you are dealing with a credit union.
>
> The former (cross-collateral (2 items of collateral)) is covered under
> 1325's hanging paragraph if vehicle purchase money debt incurred within one
> year of petition date, suggest limit to one year only.
>
> The later (multiple debt elements secured by one item of collateral only
> motor vehicle purchase for use by debtor) goes to the issue of whether
> the either or both of the debts are actually "purchase money." This is
> similar to the negative equity financing which was addressed in 2008 by 9th
> Cir BAP in Penrod (negtive equity portion of purchase contract NOT
> protected from use of 506(a)).
>
> I think Dennis may be right that there are not yet any cases addressing
> this specific fact pattern. Please let me know if you actually research
> the issue and find any cases.
>
> Peter M. Lively, JD/MBA
> Law Office of Peter M. Lively * Personal Financial Law Center I
> 11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
> Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
> A-Bankruptcy-Attorney.com
>
>
> Personal Financial Law Center II
> 1706-B Newport Boulevard, Costa Mesa, CA 92627-3073
> Telephone: (949)650-3328
>
>
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> ------------------------------
> *From:* Mark J. Markus
> *To:* cdcbaa@yahoogroups.com
> *Sent:* Wed, April 21, 2010 5:42:44 PM
> *Subject:* [cdcbaa] 910-cram downs with cross collaterlized loans
>
>
>
>
> If a debtor owes money on a credit card and vehicle loan, both of which
> are secured by the vehicle, and the debtor files a Chapter 13, is the
> 910-day requirement linked only to the date of the vehicle loan, or do
> the dates of the charges on the credit card somehow factor in to the
> equation?
>
> ************ ********* ****
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> web: http://www.bklaw. com/
> This Firm is a Qualified Federal Debt Relief Agency (see what this means
> at http://bklaw. com/bankruptcy- blog/2008/ 09/debt-relief- agencies-
> definition/
>
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In a credit union cross-collateralized car scenario, without redeeming a car and having to refinance with a loan that's 15-20%, can we file a motion in a chapter 7 to value a cross-collateralized car which would essentially remove the security for the credit card balance while maintaining the auto loan contract since it has a 2.9% interest rate?with the credit union, but I am wondering whether there is a way to "force" them into this negotiation other than to file a redemption motion.Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601

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