Reaffirmation question

[laywerless]

What is the name of your state? FL

Hi there,
I am requesting this information on behalf of my mother in law who is filing a chapter 7 bankruptcy. She has a car loan through a credit union and also has a signature loan for $3400 from the same bank. She wishes to reaffirm her loan for the car in order to keep it and she has never been late or missed a payment on it. Will they give her a hard time if she doesn't wish to reaffirm the other debt as well?

Thank you in advance for your input.

Heather

[ihatearizona]

The might give her some grief.

Are these loans through a credit union?

[laywerless]

Yes they are through a credit union. Will they give her grief anyway or just if she tries to reaffirm only the car?

[AttorneyOney]

You need to ask a Florida bankruptcy lawyer this question, because the law differs between judicial circuits. Here in the First Circuit, a creditor can perfectly well reject proposals to reaffirm less than all debuts. IIRC there is contrary law in Florida, but you must check with an experienced bankruptcy practitioner there to be sure.

[laywerless]

Thank you and I will do that.

Heather

[Ladynred]

Your MIL needs to look at her credit union loan papers - all of them, and see if there is a cross-collateralization clause in them. If there is, she's not going to be able to get out of EITHER loan. That clause is how credit unions have found a way to keep debts to them from being discharged. If the clause is not there, then she may be ok, but it MUST be specified.