Q: Is this dragnet clause enforceable under Utah law - Chapter 7 BK
I have a car loan and a line of credit with a local credit union. They were both obtained the same day, line of credit first, but the car loan paperwork doesn't clearly identify the line of credit as being cross collateralized. Of course, the loan officer never made me aware of the cross collateralization. I am now going through Chapter 7 but only want to reaffirm the car. At which point in the Chapter 7 should I address this issue? (line of credit is listed as secured debt on my schedules).
A:
You may already have created an obstacle for yourself by acknowledging that the line of credit was secured debt in your filing. You would do well to consult a local bankruptcy attorney before taking any further action, since this type of mistake--common to people who attempt to file bankruptcy without an attorney--can be costly.
*Kevin Chern is an Illinois licensed attorney who has practiced in federal consumer bankruptcy law and consumer protection law for the last 21 years. He is the Managing Partner of UpRight Law. Kevin's law partners are licensed in all 50 states and work in conjunction with Mr. Chern to provide bankruptcy and consumer legal services in all 50 states. Mr. Chern's answers to the questions are intended for informational purposes only and are not intended to be legal advice. Use of the answers does not establish any attorney-client relationship. For legal advice, you should consult with an attorney licensed to practice law in your state and with appropriate expertise.
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