Surrender Car: 18 months into 13?

[tsch824]

I have a car which is being paid within the BK and just was informed that it needs $1200 in repairs. The balance owed is $2995.00, and the car has 140,000 miles.

I have two other cars plus a company car so I really don't need this vehicle, I was trying to keep it for my 15 y/o daughter when she turns 16.

Has anyone surrendered their car when they were this far into the BK? and if so how does it work?

[Nicollette]

I have a car which is being paid within the BK and just was informed that it needs $1200 in repairs. The balance owed is $2995.00, and the car has 140,000 miles.

I have two other cars plus a company car so I really don't need this vehicle, I was trying to keep it for my 15 y/o daughter when she turns 16.

Has anyone surrendered their car when they were this far into the BK? and if so how does it work?

I just surrendered my car, but it was due to the fact that I needed a more reliable car. It was no where near worth what the lender would have got if I would have kept it til the end of my plan. The paralegal at my attorney's office, motioned the courts for me to surrender it, plus incur the debt of purchasing a newer one. Everything went ok, there were no objections, and the BK judge signed off on it on the 23rd day after the motion was filed. I had 30 days from the date the BK judge signed the motions, to surrender the vehicle. I called lender one day, and there was a tow truck there within 4 hours to pick up the vehicle. The lender has 90 days from the date the motions were signed, to sale the car, and file a claim for the deficiency balance, which now is an unsecured debt. Its been a little over 45 days, and no claim has been filed yet.
Good Luck!!

[tsch824]

Which district in Ohio are you in?

[Nicollette]

Which district in Ohio are you in?

Southeastern. My case was filed in Columbus, OH.

[Clouddancer]

What happens if you decide to dump you cars because the trustee payment is too high with them rolled in? Is that even possible to do after paying a few months? What happens to the trustee payment? Does it go up since you would have more available income for driving a older vehicle?

[Nicollette]

What happens if you decide to dump you cars because the trustee payment is too high with them rolled in? Is that even possible to do after paying a few months? What happens to the trustee payment? Does it go up since you would have more available income for driving a older vehicle?

Gee, that's a good question, but I would think your payments might stay the same, or the percent you're paying to unsecured creditors might go up. In my case when I still had the car that was included in my plan, before I surrendered it, I was paying $581 a month to the Trustee with 2% to unsecured creditors. I got financing for a newer vehicle at 16.9% with a payment of $264 a month for my newer car. The Trustee deducted the $264 from the $581, which left my monthly payment to the Trustee $317, because I'm paying the $264 for my car outside of my plan, but my percent to unsecured creditors went up to 15%.

[lrprn]

Talk with your lawyer before doing anything to find out how to best proceed in this situation.

Doing the right thing here is important to ensure your 13 is maintained in a way you can support. Only your lawyer can evaluate if surrendering the car is the right thing to do in your financial situation and inside your local court and trustee 'rules' for Ch 13s.