Filing Friday but car repo'd last night

[rckbottom]

I am filing for my Chapter 13 on Friday when I get paid so I can pay the attorney's fees. My car was repo'd last night. It is an 05 Dodge minivan with very hile miles and was actullay just sitting in my driveway because it was awaiting to be repaired. I had to save up the money to be able to have it fixed. I really do need a minivan as I have 4 kids so it is a nessecity. We have 3 years left to pay on a 6 year loan and we were going to do a cram down in the bk which would have saved us about $10k because they valued it at $3300 and I owe $13k. Now I have the dilemma of the repo.

I am wondering if once I file on Friday will they have to give me the car back or if it is even worth it? Thinking maybe I should just let it go and since I am doing a 0% unsecured and they would get nothing and I could go to one of used car dealerships around here that has "guaranteed approval" before I file Friday and get another van.

[aa06a47]

I am filing for my Chapter 13 on Friday when I get paid so I can pay the attorney's fees. My car was repo'd last night. It is an 05 Dodge minivan with very hile miles and was actullay just sitting in my driveway because it was awaiting to be repaired. I had to save up the money to be able to have it fixed. I really do need a minivan as I have 4 kids so it is a nessecity. We have 3 years left to pay on a 6 year loan and we were going to do a cram down in the bk which would have saved us about $10k because they valued it at $3300 and I owe $13k. Now I have the dilemma of the repo.

I am wondering if once I file on Friday will they have to give me the car back or if it is even worth it? Thinking maybe I should just let it go and since I am doing a 0% unsecured and they would get nothing and I could go to one of used car dealerships around here that has "guaranteed approval" before I file Friday and get another van.

Since it was repo'd prior to filing, you cannot get it back. You need to include the entire about of debt owed on the minivan in bankruptcy though, because they will try and get the difference between what is owed and what they auction it off at. Definatly list them as a creditor when you file.

[AngelinaCatHub]

With the figure you stated, they have done you a great favor. Check Craigs list, the newspapers or (if you have a way) those junk buy here pay here places and car auctions from City or County.

Vehicles are going to be cheap. You can afford to rotate junkers far more reasonable than what you owed on that van.

Call it a blessing. 'Hub

[walkthaplank]

Since it was repo'd prior to filing, you cannot get it back. You need to include the entire about of debt owed on the minivan in bankruptcy though, because they will try and get the difference between what is owed and what they auction it off at. Definatly list them as a creditor when you file.

That is not true, you can get it back if you file soon enough. The real question for the OP is why you would want it back? Like others of said, rotating clunkers will probably serve you better.

[rckbottom]

Thanks for the replies. I really need a reliable vehicle as I commute 100 miles a day to work. But I was also thinking that it may be better this way too. Now, am I going to have an issue with filing if I buy a car a few days before I file? I would think that it would look like I was doing somehting shady. I know I obviously can't cram down a new loan for a vehicle but I just want to make sure this isn't going to look unfavorably on me down the road.

[walkthaplank]

Thanks for the replies. I really need a reliable vehicle as I commute 100 miles a day to work. But I was also thinking that it may be better this way too. Now, am I going to have an issue with filing if I buy a car a few days before I file? I would think that it would look like I was doing somehting shady. I know I obviously can't cram down a new loan for a vehicle but I just want to make sure this isn't going to look unfavorably on me down the road.

Ask your lawyer which is the best course of action for you. It would be good for your lawyer to know that your car has been repo'd and what you want to do about it.

[aa06a47]

That is not true, you can get it back if you file soon enough. The real question for the OP is why you would want it back? Like others of said, rotating clunkers will probably serve you better.

If the vehical was repo'd before a bk was filed, why do you believe they can get it back? The terms of the contract were exercised prior to bk filing (from the note, rkbottom has not even filed yet). Since there is no equity in the vehical, I think it more important to make sure that this creditor be listed in the bk filing.

I agree with the fact that it does not make dollars and cents to keep it. But, I also cannot imagine having to try and go buy a different vehical while in the middle of bk. A cram down with a judge induced interest rate (if that is possible) might have been the best thing for this poster. Hard to tell, not being in those same shoes what is best.

[walkthaplank]

My lawyer explained to me that there is still a period in which you can get the car back if you file for BK. The car is still part of the BK estate until you pass that period where you can cure your arrears and the car is auctioned off. The court can actually have them return the car to you until the BK is resolved if you intend to cure the arrears in the plan. It is more work for your lawyer to get it back (meaning more money for you) but it can be done.

[Carloscda]

If the vehical was repo'd before a bk was filed, why do you believe they can get it back? The terms of the contract were exercised prior to bk filing (from the note, rkbottom has not even filed yet). Since there is no equity in the vehical, I think it more important to make sure that this creditor be listed in the bk filing.

I agree with the fact that it does not make dollars and cents to keep it. But, I also cannot imagine having to try and go buy a different vehical while in the middle of bk. A cram down with a judge induced interest rate (if that is possible) might have been the best thing for this poster. Hard to tell, not being in those same shoes what is best.

Speaking from experience from a few months ago, YES YOU CAN get your vehicle back but you most defiantly have to file before the (depending on what state your in) 10-21 day period you have to redeem the vehicle before it's auctioned off!

[BigJohn]

In my area, if you can go and find a clunker you can trade it in for a new Pontiac with a cost under $8000!