Can we give back car?

[NoMoney30]

Hello, we have 2 cars included in our bankruptcy filing. One of them is a dud... its collecting dust in my driveway. It needs work and it won't pass inspection and we have not the funds to fix it... nor do we technically need it. The loan was included in our Ch 13 and it was crammed down. It is now paid off in the plan but of course we don't own the title because they won't give it up until the discharge.

However, is it possible to ask them to come get it? Can we give it back to the bank? We don't want any money out of it and we don't want to replace it with another car. I would love to remove it from my insurance and not have to pay for it anymore. It is silly to keep a junk car sitting in my driveway for the next 3 years just because they won't give me the title to it.

Anybody have any experience with this?

[shipo]

Sorry to say, but my understanding is, you have roughly a zero percent chance of having them come fetch the car. As a suggestion, if you are going to effectively be forced to keep it, and since you no longer owe anything on it, cancel the insurance, or at least cut it back to just fire and theft.

[NoMoney30]

Sorry to say, but my understanding is, you have roughly a zero percent chance of having them come fetch the car. As a suggestion, if you are going to effectively be forced to keep it, and since you no longer owe anything on it, cancel the insurance, or at least cut it back to just fire and theft.

Well I have cut the insurance back as much as I can, I got rid of comprehensive and collision but I'm still paying over 100 a year for it being on my insurance. And then the cost to maintain the registration... I don't think I'm allowed to cancel it completely for DMV reasons right?

Its just sitting there rusting and I can't believe I really have to just keep it for no reason. :/ I'm willing to bet that the bank wouldn't even consider giving us the title right?

[justbroke]

You could always ask the bank for the title. They may be nice.

The problem with keeping things in a Chapter 13 is that the creditor can always cry foul if you later decide that you no longer want the property. Think about the loss in value to the creditor and their ability to recover the depreciated value. So what usually happens is that you'll still have to pay for it as if it were (priority) secured debt.

I don't know what value of the vehicle. Since the "secured" part is paid off, perhaps you could find a buyer wiling to pay the unsecured amount and make a deal with the creditor. While I don't like to speculate, this is all speculation. So many variables are involved; age of vehicle, extend of damage, cost of repair, market value, junk value, creditor concerns, etc.

Are you on speaking terms with your attorney? I mean, does your attorney respond to any requests? It may be a good idea to test the waters and see what s/he thinks about the issue.

[NoMoney30]

Yea I dunno if you remember my dirt bag attorney but getting them to respond to anything is like pulling teeth. Or they just tell me no sorry you can't do that....go away.

Right I understand their position but like I said I don't want any money or anything out of the car they can have it! I think we owed like 10 or 12k on it before the BK...they crammed it down to 3,500. It is a 2007 Mercedes ... needs new rotors, brakes, tires, battery...

If I contact the bank, all they can do is laugh at me and say F OFF right?

[justbroke]

Correct. However, they may agree to take it, sell it at auction, and then request that you pay the deficiency in the bankruptcy. Or, you could propose to sell it at market value and payoff the crammed down secured portion. I don't know.

Yes, the worse they can do is laugh all the way to the... never mind. You may need to speak directly with the bankruptcy or insolvency department. If it's a credit union, they will likely just laugh. If it's another creditor they could be okay. But, whatever you do, this has to get coordinated correctly. If they do say they'll work with you, you do need your attorney. I'd hate for you to go through all those motions, including giving them the car, and they still just keep collecting as a secured creditor.

[flashoflight]

I had a broken junker and was caught by code enforcement for a non-operable vehicle in my own driveway probably due to the outdated sticker and the cobwebs in the wheel well. A bunch of other people have driven by and offered to buy the car so somehow strangers knew my car was not moved for months. Once code enforcement finds the car, you'll have to make room for it in your garage since you don't have title yet. All it takes is for one neighbor to snitch.