My credit union told me that my car loan is cross-collaterized with my credit card and I have to keep both in bankruptcy, is this true?

Maybe not.

Back on December 27, 2013, I wrote a blog article saying that you would definitely have to keep both the car loan and the credit card, because your credit union would argue that your car was collateral for both its secured car loan and for the unsecured credit card. My credit union says that I have to pay off my credit card to keep my financed truck, is this true?   But things have changed.  cross collateral 2

Now, I am seeing credit unions acknowledge that if there is no equity in the car loan (you are upside down), then there is no equity to secure their credit card.  In other words, you don’t have to keep both loans.  Now this is not consistent with each credit union, but things are changing in a good way for debtors in bankruptcy.

So you MAY not have to keep both loans.