Notice of relief of automatic stay

[sassiebaz]

So, I got a letter today, from the attorney's that represent Chrysler. They got an order for relief from the automatic stay. Obviously they saw that we are not going to keep the vehicle. Our creditor's meeting is on June 10th. What does this mean? Do we have to surrender it now? Do we have a few days? Thank goodness we just purchased another vehicle today. We got a GREAT deal. I am so pleased about that. But, anyone know what happens next? Thanks!

[optimistic1]

That is exactly what they are doing. Let me ask you this. Why have you not given the car back to them yet if you know for a fact that you do not intend to keep it, or have it paid for within your plan?

If the court granted the relief from the automatic stay then the following is true.


You have no equity in an item of secured property, and the creditor (who wants to repossess it) claims that you don't need the item to carry out your Ch.13 plan.

You may be able to get around a motion that makes this argument if,

Your plan includes payments on the secured item.

You can show that you need the property to generate income. For example you could argue that you need to keep the car because you have to drive to work and have no adequate alternative means of transportation.

If they already received the relief, then they want the car and have the legal right to repossess it once again, park it outside and tell them to come and get it, but put some Limburger cheese inside of it first.

[sassiebaz]

Yeah, I figured all of that! It's just we got the letter on Saturday, I can't talk to my attorney until Monday. We hadn't given the vehicle back because we needed to drive it until we got another vehicle. Well, we got that today. So, if they show up tomorrow...Sunday, and knock on my front door, you are saying I should hand the keys over? I mean, can't they wait until Monday? I'd like to be able to talk with my attorney first. Not like it would change anything, but I mean seriously, they can wait until Monday. I don't want my neighbors knowing my business. Maybe I can tell them I will meet them at the store up the way, and hand the keys over there....

[sassiebaz]

Hey, we may just go park it tonight, up at the store up the street. If they show up to my house, do I need to give them the keys or can I just tell them where to find the vehicle????

[optimistic1]

I've never given up a car, and they would take it without the keys anyway if the repossessed it from your driveway. The repo man would be in and out in seconds, I would just park it outside and let them come and get it. If you have absolutely no intentions on keeping the vehicle, then what are you going to talk to your attorney about?

[phoenixrisin]

Can I ask you if you are late on your payments, also? We are in the same boat. About $10K underwater on a dodge, will be 30 days late in a week, and our 341 isn't until 6/23. Wondering if this is what Chrysler is up to now with us too...

Trying to figure out how fast we need to buy a cheap car!

Thanks,

[sassiebaz]

We were 60 days late. To give an update, we haven't heard a word on them trying to get the vehicle. Our 341 is Wed. so not sure why they even motioned for the relief of the stay if they haven't even tried to come get it. We will just wait until we hear from them and the give them back their vehicle. I hate to say, I'm gonna miss driving an SUV. It was a nice one, and rode great! But, we are getting back to basics, and our goal is to NEVER be in this spot again!

[Ifonly]

Let me know how it goes since we're prepping for the same thing! Chase Auto hasn't filed for relief (that I'm aware of) but we're surrendering our Sienna. Same situation, I couldn't surrender it until I had something else to drive. Took care of that this weekend, the dealer is transferring the plates and then I was thinking that I could just call Chase and find out where they wanted me to bring the car for surrender? I really would prefer not having someone get it here since I have the nosiest neighbor ever but oh well. Then I can cancel the insurance which will actually give me a little refund! Yeah!

[sassiebaz]

Let me know how it goes since we're prepping for the same thing! Chase Auto hasn't filed for relief (that I'm aware of) but we're surrendering our Sienna. Same situation, I couldn't surrender it until I had something else to drive. Took care of that this weekend, the dealer is transferring the plates and then I was thinking that I could just call Chase and find out where they wanted me to bring the car for surrender? I really would prefer not having someone get it here since I have the nosiest neighbor ever but oh well. Then I can cancel the insurance which will actually give me a little refund! Yeah!

Same situation as we were in. The same day we got another vehicle, I got the letter about the relief of the automatic stay. I feel blessed we found a great minivan at a great price. Turned outmy husband knew the sales manager and he gave it to us for what we asked.....they took $2995.00 right off the sticker price....If Chrysler calls (or whoever they use to retrieve it) I will tell them where they can pick it up, Im not letting them tow it from our home. I have one of those nosey neighbors as well!

[eddiep]

sassie

Did you finance the new car? Was your credit score still good? You bought it after you filed and before the 341?

[CH33 Paralegal]

Here's some info on "the stay"

The stay is the protection that the bk offers your assets. In a 7, the stay is only temporary. While the stay is in place, the creditor can't pursue the debt against you directly. In order to do ANYTHING about the car, wether it be reaff or surrender, the stay has to lift, otherwise, the creditor is breaking the law.

If you intended to surrender, the creditor has been informed of that. In order to repo, the stay has to lift. In the car situation, the creditor can come an repo at any time after the stay has lifted, but not before.

You are allowed to communicate with the car creditor to plan the surrender. You might be able to drop it off to them somewhere as well...it would save them the trouble and I've seen clients voluntarily take it back after the stay lifts. It's just a professional transaction and does not need to be anything like operacion' repo or whatever that written show is.

[sassiebaz]

Just an update. I had my 341 meeting yesterday, and today I called my attorney to see when the chrysler "people" are coming to get their vehicle. I asked if I could call their attorney's, so I did. This is why people get so dang confused witht his legal crap! This is also why I don't give advice, just opinions. When I recieved this mail last week, I thought the order meant they could come get the vehicle. In fact, when I called their attorney's they said the automatic stay had not been signed off by the judge and it wouldnt be until the end of June. So, why the heck ask for the relief of the automatic stay, when they are gonna get the vehicle back anyways? Can an automatic stay go on and on or something? I only thought it would last 30-60 days? Im sitting here getting irritated that they haven't come to get the dang car! Looks like I'll be waiting even longer....

[Ifonly]

Some people probably have a lot more trouble getting another vehicle or want to push it as long as possible so they probably need to get the relief so they can go after the people who don't come forward with the surrender. I started calling Chase yesterday to "arrange" a surrender and can't get a phone call back. The dealer I bought it from (I've bought over 4 cars there thru the years) actually said I could drop it there so that's what I'll probably do come early next week. I really want that little refund on my insurance. It's only $50 but hey, $50 is a lot of money lately!

[lrprn]

So, why the heck ask for the relief of the automatic stay, when they are gonna get the vehicle back anyways?

Sassie, your car lender had to petition the court to lift the stay so they could start the process to come get your car. Until the judge signs off on the court order lifting your automatic stay, the lender cannot legally come get your car. This is just how the process works when you surrender assets when you file bankruptcy.

If you really want to get the car off your property as soon as possible, once the judge signs the court order, make arrangements with your lender to drop the car at an agreed spot (preferably a dealership or the bank/credit union parking lot) and turn over the keys to a responsible person. Be CERTAIN that you get a receipt stating this was done and get a signature from said responsible person at the drop location. If you can get the document witnessed, even better. Do NOT just leave the car there and walk away.

There have been a few instances where an unscrupulous lender has taken the car back and then said they never received it, thus maintaining they were deprived of their asset and you should still owe them their money. Don't get caught in this trap (even though it's a rare one) since it's so easily avoided.

[AngelinaCat]

I might also add that if you knew going into this that you were not going to keep the vehicle, why didn't you call the local dealer and have the arrange a pickup?

My husband made the unfortunate mistake of cosigning for an acquaintance who eventually started defaulting on his payments for his vehicle. When we started getting late notices in OUR names for this 'A-crooked-letter crooked-letter,' my husband went after this creature and made him surrender the vehicle.

We had it cleaned, we took pictures, and had the rollback guy sign off on a checklist and receipt.

The loan company sold the vehicle at auction for a fraction of what it was worth, then sued us, along with the acquaintance, for the difference. We were going BK anyway, and included them. The other party chose to ignore the court papers.

We were discharged. He is on the hook for the full amount of the difference.