Search
 

Credit Union Goes to Court - Should Debtors Keep Cars Without Complying with Reaffirmations?

CUNA and the North Carolina Credit Union League have submitted arguments to the U.S. District Court for Eastern North Carolina in support of an effort to prevent credit union members who have entered into bankruptcy from keeping cars they owe the CU for if the bankruptcy court does not approve...

By David Morrison | Updated on April 01, 2008

WASHINGTON — CUNA and the North Carolina Credit Union League have submitted arguments to the U.S. District Court for Eastern North Carolina in support of an effort to prevent credit union members who have entered into bankruptcy from keeping cars they owe the CU for if the bankruptcy court does not approve their reaffirmation agreements.

The case involves two members of the $1.8 billion Coastal Federal Credit Union, headquartered in Raleigh, N.C. Landon and Daffney Hardiman financed a car through Coastal FCU in February 2005 and filed for Chapter 7 bankruptcy in May 2007. As part of the process, for which they had an attorney, the Hardimans’ reaffirmed the debt for the car, but their attorney failed to sign the affidavit that the reaffirmation agreement would not cause them undue hardship.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.