Can I Discharge the Credit Card at the Bank Where I Have My Car Financed and Keep the Car?
By Bankruptcy Attorney on Apr 30, 2007 in General Bankruptcy Information
Generally yes, these are mostly separate types of loans.
However, in certain situations, usually it has been with a Credit Union, the credit card or line of credit you have may be connected to your car. This is called cross-collateralization.
If the car loan and the credit card or other debt with the bank is secured by your vehicle then you may have to pay all or a portion of the credit card or other debt in order to keep the vehicle.
How do you know if your loan is cross-collateralized? The bank can tell you by calling them or you can find your signed agreement and it will tell you.
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