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11-16-2008, 10:54 PM
| | Junior Member | | Join Date: Nov 2008
Posts: 5
| | | Cross collateralization
What is the name of your state (only U.S. law)? NC
I filed Ch7. I have a car i want to keep that is financed through a credit union that falls under cross collateralization. Who can determine the value of the car? My car is an older car that has to be looked up under a "classic" on NADA. They are trying to say it is mint condition and worth $20,000. Although the car is nice, it is far from "mint". According to the NADA, this car is a "20-footer". Which means from 20-foot the car looks flawless. This describes my car as from that distance you cant see all the flaws. The NADA for this is $13,000. The bank is not budging on their deal that they think it is worth a whole lot more than it actually is. Can they do this? My lawyer is not being helpful at all. |
11-17-2008, 06:29 PM
| | Senior Member | | Join Date: Jan 2005
Posts: 2,336
| | | Typically, the trustee would resolve a dispute of this nature. Sometimes, the parties will agree to hire an appraiser and abide by the appraiser's number. Or, each party gets an appraiser and the trustee uses the average. Or, sometimes, if the appraisers are a long way apart, the two appraisers will agree on a third appraiser whose number is final.
The long and short is that your lawyer ought to know how to get this done. I'm not sure what you mean when you say your lawyer is not being helpful. Does that mean he is not giving you the answer you want to hear? Does it mean he is blowing you off?
Ultimately, it is the responsibility of the trustee to approve the final process and number. |
11-17-2008, 10:35 PM
| | Junior Member | | Join Date: Nov 2008
Posts: 5
| | | Cc
"Does that mean he is not giving you the answer you want to hear? Does it mean he is blowing you off? "
I dont think he is actually blowing me off. But he sure doesn't seem to be trying to help either. It's like he is taking advice from the CU's lawyer. I don't think he knows what he is doing. I can't get him to understand that the value of the car is not what they say it is. It's much lower. And now that I think about it, when I took the loan out on the car 2 years ago the CU valued the car at $13,000 then. I have that in writing too. I have all the loan papers. So how is it that now, only 2 years later, the car is magically worth over $7,000 more? |
11-18-2008, 01:12 PM
| | Senior Member | | Join Date: Jan 2005
Posts: 2,336
| | | Then hire an appraiser to appraise the vehicle. Or, at least get a written value estimate from a classic dealer.
Most chapter 7 bankruptcies are simple and don't get disputes like this and your lawyer probably does not know what to do and is working on a flat fee anyway so his incentive to get hostile is low -- but this is not brain surgery. Do some groundwork yourself and find an independent expert to is willing to put something in writing or to testify before the trustee.
Your loan papers might or might not convince a trustee that the CU is wrong.
The CU is just looking out for themselves. Don't take it personal. |
11-18-2008, 04:25 PM
| | Senior Member | | Join Date: Feb 2006 Location: Philadelphia, PA
Posts: 17,857
| | | Duplicate thread. | |
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