Q: What happen to a credit card debt and a auto loan with the same bank on a bankruptcy?

A: You offer scant facts, e.g., value of car, balances of auto debt, credit card debt, what kind of credit card (Visa, etc.), what if any cross-collateral prohibitions there may be in the lender's agreements with the credit card issuers, etc.

Generally, an auto loan that was initiated longer than about two years prior to the bankruptcy filing will be treated as any other secured debt. Those treatments vary depending upon which Chapter of bankruptcy you choose/are eligible to file. A perfected auto lien cannot be crammed down in a Chapter 7 case; it may be modifiable in a Ch. 13.

The credit card balance is a separate debt, and unsecured, and will be treated as that whichever Chapter you choose.

What matters more is whether your bank/hold deposits in the bank which holds your vehicle loan or credit card debt; if so, the creditor may offset your debt against your deposits.

Speak to an experienced bankruptcy attorney in your state for reliable answers, once you have shared full facts with counsel.

A: Generally, the credit card debt gets eliminated in a chapter 7 bankruptcy case. The auto loan you would still want to pay it and keep current with it if you decide you want to keep the car. However, as long as you stay current on the vehicle payments you should be able to keep the vehicle even if you have a credit card debt with the same bank.

I hope this is helpful.

A: The answers already provided fully cover the issue. For further advice, discuss with a bankruptcy attorney for assistance in filing a case if it is in your best interest to do so. Some of us offer a half hour no charge consultation which may provide you further details.

A: If you file for bankruptcy, your credit card debt and auto loan with the same bank will be treated differently depending on the type of bankruptcy you file and the specific circumstances of your case.

In a Chapter 7 bankruptcy, your unsecured debts, such as credit card debt, may be discharged, meaning that you will no longer be responsible for repaying them. However, secured debts, such as an auto loan, may be treated differently. If you want to keep your car, you may need to continue making payments on the auto loan or negotiate a new payment plan with the lender. If you are unable to make payments on the auto loan, the lender may have the right to repossess the car.

In a Chapter 13 bankruptcy, you may be able to keep your car and other secured assets by repaying your debts over a period of three to five years. This type of bankruptcy involves creating a payment plan that allows you to pay back a portion of your debts over time, while keeping your assets. Credit card debt may also be discharged, but the discharge may not occur until the end of the payment plan.

It's important to note that the specific treatment of your credit card debt and auto loan in bankruptcy will depend on the specific terms of your loans, the value of your assets, and other factors. If you are considering bankruptcy, it may be helpful to consult with a bankruptcy attorney who can advise you on your legal rights and options.