Help!!! Surrender car??????

[Sastry]

Question: I am 2 years into my Chap 13 (payments are $575 for 3 years) and I have 2 car payments. Car #1 is a very cheap payment and I want to keep that car. Car # 2 sets me back almost $350 a month and now I do not need or want this car. A family member just gave me a great car for free!!!!

I called my lawyer and he said due to new BK laws, if I surrender my car, the Car Company would go to the courts and would have the car loan taken out of my Chap 13 and I would be on the hook for the whole balance. Has anyone ever done this or know if this is the case? Thanks!

[HHM]

Did you have the car loan prior to filing BK? If yes, your attorney is on crack.

You can surrender the car and the car lender would now have some amount of an unsecured claim. Here is the rub, the trustee is going to want that $350 per month added to your chapter 13 plan since you would no longer be making that car payment. That $350 becomes disposable income.

[Sastry]

Thanks. Yes, I did have the loan before my chap 13 started. What happens if I fall behind on payments? I know they don't come get the car till you are at least 2 months behind - Or what if it got surrendered just a month ot two before my last Chap 13 Payment? I wish I trusted my lawyer, but her is such a wuss with every question. He is "keep your head low" person. Thanks Again.