{"id":247,"date":"2017-01-31T17:25:00","date_gmt":"2017-02-01T00:25:00","guid":{"rendered":"http:\/\/perezlawgroup.com\/blog\/2011\/01\/31\/the-big-bad-credit-union-and-why-you-should-avoid-them\/"},"modified":"2021-10-27T16:17:18","modified_gmt":"2021-10-27T23:17:18","slug":"the-big-bad-credit-union-and-why-you-should-avoid-them","status":"publish","type":"post","link":"https:\/\/perezlawgroup.com\/the-big-bad-credit-union-and-why-you-should-avoid-them\/","title":{"rendered":"The Big Bad Credit Union and Why You Should Avoid Them"},"content":{"rendered":"
If there is one thing I could suggest to any potential bankruptcy<\/a> client, or anyone for that matter, it is to avoid credit unions<\/a> at all costs.\u00a0 Well, at the very least, avoid getting an auto loan and a credit card with your local credit union. This is because most credit unions (and some other financial institutions) cross collateralize their loans.<\/p>\n If you take a look at your account numbers one will be XXXX-XXXX-01 and the other will be XXXX-XXXX-02.\u00a0 That “-01” and “-02” signifies that those are actually two parts of one account.\u00a0 If you fall behind on the credit card part of that account, the credit union has the right to call in the entire<\/em> account, including your vehicle loan.\u00a0 This means that even if you have made every single one of your car payments, but can’t keep up on your credit card, the credit union can repossess your vehicle to satisfy the account.<\/p>\n It also means that I am in a tough spot when you come to me to file chapter 7 bankruptcy<\/a> and want to include your credit union credit card but keep your vehicle. If this is the case, the credit union will say that you either have to pay all accounts or surrender the vehicle. I know it’s unfair.\u00a0 That’s why I am warning you now.\u00a0 We have a few options in bankruptcy, but none of them are full-proof:<\/p>\n I hope that this article will reach many of you in time so that you can choose Option 6 – do not get multiple loans with your credit union! Whatever you decide to do, please remember to mention if you have loans with\u00a0a credit union when you see a bankruptcy attorney<\/a> for a consultation. It will save them future headaches as well.<\/p>\n","protected":false},"excerpt":{"rendered":" If there is one thing I could suggest to any potential bankruptcy client, or anyone for that matter, it is to avoid credit unions at […]<\/p>\n","protected":false},"author":2,"featured_media":16856,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[217],"yoast_head":"\n\n