The Complete Book on Bankruptcy

By respected consumer bankruptcy attorney

Peter Francis Geraci J.D.

Chapter 1
How to have a Stress-Free Bankruptcy

Chapter 2
What is Bankruptcy

Chapter 3
What causes people to need Banruptcy Relief

Chapter 4
What is the procedure?

Chapter 5
When you should consider Chapter 7 or Chapter 13 plans?

Chapter 6
What can Bankruptcy do for you?

Chapter 7
Common Misunderstandings about Bankruptcy

Chapter 8
Is Bankruptcy Bad?

Chapter 9
What does Bankruptcy cost?

Chapter 10
Can I file without my spouse?

Chapter 11
Does my Employer know if I file Bankruptcy?

Chapter 12
Do I lose anything?

Chapter 13
Does Bankruptcy "Ruin my Credit"

Chapter 14
Can I keep bills off my bankruptcy

Chapter 15
Bills or property in somone else's name or posession

Chapter 16
What about the Credit Union?

Chapter 17
Co-Signors

Chapter 18
What about my car?

Chapter 19
What about my House?

Chapter 20
When do creditors stop bothering me?

Chapter 21
What are Cross-collateralization Agreements?

Chapter 22
Joint Accounts with Parents

Chapter 23
When do I stop paying creditors?

Chapter 24
Gas, Electric & Phone Bills

Chapter 25
Bankruptcy & Divorce, Alimony & Child Support

Chapter 26
What Bankruptcy won't solve

Chapter 27
Chapter 13 Debt repyament Plans

Chapter 28
Will I be able to get credit again?

Chapter 29
Bill Consolidation Loans

Chapter 30
Bill Consolidation

Chapter 31
Wage Assignments, Deductions and Levies

Chapter 32
Student Loans

Chapter 33
Can I get rid of Taxes

Chapter 34
NSF Checks, Traffic & Parking Tickets

Chapter 35
Surrendering Real Estate & Time Shares

Chapter 36
Business Bankruptcy

Chapter 37
Professional Persons

Chapter 38
Do you ever "Not Get" a Discharge?

Chapter 39
About Geraci Law LLC and Peter Francis Geraci

Chapter 40
Who is the best Bankruptcy lawyer near me?

Chapter 41
What if I need a Bankruptcy lawyer near me?

CHAPTER #16 WHAT ABOUT THE CREDIT UNION?

Danger here!Credit unions take a lien on all property you list for any loan. This is called "cross-collateralization". Therefore, if you have a car loan and credit card, you may have to pay off both loans to get the car title, even if you file bankruptcy on the credit card and want to pay the car loan.

Credit unions often have an arrangement with the employer to use the employer's name. The company you work for, however, does not generally own the credit union. Credit unions are owned by the members. Each member must buy shares, and then is entitled, subject to an approved credit application, to borrow money from the credit union. Credit unions usually make loans at less interest than banks or finance companies.

Although getting a lower interest loan is a benefit, credit unions have several practices that can lead to financial trouble for a borrower. First, they want a payment on their loan every time the employee gets paid, and they usually want a larger monthly payment than other lenders. This gets the loan paid quicker, and results in less interest payments, but puts a greater burden on the borrower to pay the loan back quickly.

Since most people are borrowing from credit unions for necessities, they don't have any extra money, so the higher payment to the credit union often makes it difficult to make payments on other bills. Credit unions also like to get co-signers. If your co-signer is a relative or co-worker, you may want to repay the loan.

Another practice of credit unions is to take a security interest in pension fund distributions. In some states, and under the Federal ERISA law, that may be illegal. If there is such a security interest, the bankruptcy will not void it, unless you specifically provide your attorney with the documents showing that there is a security interest in your pension, and pay the attorney for the extra work necessary to avoid that security interest.

You will need special advice from your attorney regarding credit union loans. There is nothing wrong with agreeing that your credit union can deduction can continue, and that the loan can be paid in full, but you should approach that issue as a business decision, not an emotional one.

Example: Mabel owes the credit union $4500. They have her shares of $550 for collateral, and they also made her get 3 co-signers before they would give her the loan. Her friend Jean owes the same credit union $5000. Jean has no savings in the credit union, and no co-signers.

The Peter Francis Geraci Chapter 7 or 13 Solution: Mabel is going to let the credit union keep deducting after her Chapter 7. Although her personal liability will be wiped out, she will let them take the regular payment to protect the co-signers.

Jean will go to the credit union with her bankruptcy papers and tell them to stop deducting. This will have no effect on her job, and her paycheck will be a lot bigger.

In a Chapter 13, if Mabel wanted to pay the credit union, the credit union would be paid by the Chapter 13 trustee along with the rest of the creditors, usually. The creditor union must be treated the same as any other creditor, and can be either paid, or not paid. Because Mabel's Chapter 13 payment pays the co-signer loan ahead of unsecured creditors, any co-signer is protected, and no separate payroll deduction is permitted. That puts more money in Mabel's check.