At which point should I address the car loan in an enforcement of dragnet clause in a Chapter 7?

It's best to consult an experienced bankruptcy lawyer. That said, why not contact the lender and offer to reaffirm only on the vehicle? The worst they can do is say no-and generally banks would rather have your money than used glass and steel.

I presume you scheduled both obligations on your petition. If the line of credit is not secured by the vehicle and no cross-collateralization agreement was signed, you should be able to reaffirm the car debt and discharge the line of credit. However, you also say that the "loan officer never made [you] aware of the cross-collateralization," which seems to indicate the credit union is taking the position that it was. It all comes down to the documents you signed. If you are trying to file and manage the bankruptcy yourself, you should consult with a pro bono bankruptcy group in your area. Even better, you should find a reputable attorney who does bankruptcy and consult them first. Bankruptcy is not a process for beginners. Good luck.

Ask your BK lawyer about a 722 redemption. Good luck!

Dragnet clauses are not favored by the courts. They are often slipped into the fine print of loan agreements by credit unions or other lenders without any notice to the borrowers. This is an issue which is decided on a state by state basis but every state that I've looked at only enforces dragnet agreements that are specific. For example, if the dragnet agreement on a car loan when there is a pre-existing credit card explicitly states "the car will be collateral for credit card account 9803 .....". In any case, reaffirmation is voluntary by both the creditor and the debtor. The creditor can arbitrarily refuse to reaffirm, so they are free to set the terms as they please. The debtor then can reject the creditor's terms.

There is no such thing as reaffirming a car in a Chapter 13, and there is no way for the credit union to voluntarily undo a cross collateralization. Cross collateralization is part of your membership agreement with the credit union and so obtaining the car loan and the line of credit did not require the CU to repeat all the terms of the agreement you already had with them again. Depending on the age of the car loan, or whether the car loan was to purchase or refinance an existing loan, you might be able to implement a 910 cram-down of the vehicle in your plan.

Your only option for keeping the car is to "redeem" it or pay off the credit union. There are sources of financing for such transactions.

Your best bet is to do a redemption of the car or convert to a chapter 13 and cram down the car.