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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I recently became disabled and hadto file chapter 7 we are

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I recently became disabled and hadto file chapter 7 we are planning to give back 2 cars to the loan co. we cosigned a note for our son on a truck about 2 years ago now the loan co says they are going totake his truck. he is current on his payments the loan is in his name and so is the vechile they said it is called cross-collateralization is this legal.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
If the vehicle is cross collateralized, then he may be on the hook. If a loan is in default and not reaffirmed in the bankruptcy case, the lender has the right to repossess any collateral securing that loan. Read your loan contract carefully, have your attorney review it as well. If this is true, you may be able to negotiate something with the lender. I'm sorry for your situation, I've seen this enough times and it gets me upset. Hope the lender will work with you. Good luck
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