Voluntary repo before filing

[227]

Currently i'm saving up money to file chapter 7 and I wanted to surrender my car in the bankruptcy. I have a second vehicle and my tags expired today on the vehicle I will be including in the bankruptcy. I called my lender and setup a voluntary repo since I did not want to pay for new registration or continue to pay insurance. Now thinking about it, was this a mistake? Should I have let them repo it on their own terms? It will most likely be 2 months before I actually have the money to file.

[justbroke]

It's hard to say and it depends, but you'll have a repossession on your credit which may make it more difficult, in the future, to obtain car loans (until that either ages or falls off). If you surrendered it in the bankruptcy, they would have needed to make the arrangements to get the vehicle and it is highly likely (not possible, likely) that it wouldn't be reported as repossessed as it would be reported Included In Bankruptcy (IIB).

As for whether you could avoid repossession over the next 2 months or you need those payments to survive, It's a tough choice. Personally, I probably would not voluntarily call a lender and tell them to come get their car (voluntary repossession). I may do that, call them, after filing bankruptcy, but probably not before.

[227]

Yea, I'm really regretting my decision now. Lesson learned.