[CLBS] Cross-collateralization question

[Michael Jacques]

I have Chapter 7 client who filed almost 90 days ago.  A Credit Union credit card was listed as unsecured and is scheduled to be discharged.  The car loan was also through the CU.  The car loan got paid off during the pendency of the Chapter 7, but the Credit Union is now holding the title for the car hostage because the vehicle was cross-collateralized with the credit card.  Can they do that?


Any help is greatly appreciated.

Michael Jacques, JD
JACQUES LAW
Office: (208) 344-2224
Fax: (208) 287-4300

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