Currently in a CH13....car included but....

[jkim0907]

hey all... I'm back with another question. 16 months down, 44 to go! Ugh...

I have a question...I had a car included in my CH13. I just got a new job that gave me a company car to use. I dont want my current vehicle I have now and was wondering if anyone has ever given the car back to the finance company while still making payments on the car (within the plan). I believe the balance left on the car in my plan is about $8K and the Kelly Blue Book is about $6 on the car. So i'm a little under.

Just wondering how to handle this situation? Can I just call the finance company and tell them that even though I'm in a wager earner plan, that I want to give the car back to them? If this is possible, do I get credit for the value of the car?

I basically want to do this because 1. I dont need two cars 2. I dont want to pay for registration and insurance 3. The car's just been sitting for the past month and half unused...

Any advice?

Thanks all!

[LadyInTheRed]

The finance company isn't going to come get it while the trustee is making payments on the loan because repossession would violate the automatic stay. I think you need to modify your plan to give up the car. But the attorneys fees involved may outweigh the cost of registration and insurance. Also, what if you lose your job? Then you'd be without a car. If you do give up the car, unless you are already paying 100% to unsecured ceditors, the amount to unsecured creditors would be increased in the amount remaining to be paid on the car. Also, an agressive trustee may want to increase your plan payment because your vehicle ownership expenses have presumably decreased now that they are being covered by your company.

You should run your question by your attorney. But, I suspect you are better off leaving the car parked.