How long do we have...vehicle included in BK

[matty11]

Our BK was discharged in March of 19. We did NOT sign reaffirmation agreements on either vehicle. My husband's vehicle needs some repairs so we are planning to let it go. We have remained current on payments. Once we stop paying, how long do we have until they repossess? Loan is through BMW financial. Hoping to pay cash for something else.

Thanks everyone. These decisions are tough.

[justbroke]

There is absolutely no way that anyone can tell you when something discharged in bankruptcy would be repossessed. The lender is under no obligation to repossess the vehicle. It's actually a problem post-bankruptcy where the lender will not "come and get" the vehicle by any means. The problem arises because the lender has no legal obligation to exercise their repossession rights, and it may not be "worth" it for the lender to actually repossess the vehicle/property.

If you want to tickle the bear -- as we say -- you could inform BMWFS that you want to surrender the vehicle to them and if they have any procedure for doing so. If you don't want to tickle the bear, and just wait for it to become hungry, then continue to operate the vehicle but be prepared for repossession. If you continue to operate the vehicle just maintain at least liability insurance.

May I ask if you have a significant amount remaining? Other than the repair issue, is the payment or remainder of the term bothering you?

Yes, these are tough decisions, but you have to just compartmentalize them as business decisions.

[matty11]

Yes there is a significant amount remaining with 4 years left. The car is upside down. How quickly, legally speaking, can they come repossess after a missed payment??

[justbroke]

Yes there is a significant amount remaining with 4 years left. The car is upside down. How quickly, legally speaking, can they come repossess after a missed payment??

That would be based on State non-bankruptcy law for your State.

For California, it appears that the lender can technically repossess a vehicle as soon as you default on the contract; which is just one day late. However, you need to read your loan agreement to see if there is a grace period for payment. As I wrote earlier, there's no way to tell if the lender will take it on the first day they are eligible to repossess (that 1 day after non-payment, or 1 day after the grace period has ended, whichever is later) or will wait 30, 60 or even 90 days to exercise that right. There are people that have gone 90 days without paying and have not had a repossession. It is too fact-specific and it is entirely within the lenders rights as how they want to approach the default.

[matty11]

I'll read the contract to see if I can gain any more info. Thank you for taking the time to respond, I appreciate it!!!

[matty11]

In case anyone is still reading, I wanted to confirm something. Both cars had to be listed in BK. We didn't reaffirm either car. We continued paying on the BMW (the one we plan to surrender) until now. They can't try to sue us or anything, correct? Since it was included in BK??

[spr250]

I am surrendering my truck. Beyond upside down and the motor went. My plan, give them 30 days and tow it to the bank, drop the keys off inside if not open leave a note on the window and lock the keys inside the vehicle.

[bcohen]

I am surrendering my truck. Beyond upside down and the motor went. My plan, give them 30 days and tow it to the bank, drop the keys off inside if not open leave a note on the window and lock the keys inside the vehicle.

This is a bad plan, because the bank may not own its building and land, and may just be renting the space. The actual owner/property management company might have a contract with a towing company which the bank would not be party to. Depending on state law, you could find yourself liable for towing and storage fees, which would become a post-petition debt, i.e. it would not be discharged.

Here in Arizona, if you abandon a vehicle, when the entity holding possession of said vehicle files for abandoned title, the state will assess you--the most recent registered owner--an abandoned vehicle penalty of approximately $800, and suspend your driver's license if you do not pay. The payment, or failure to pay this penalty is separate and apart from any towing and storage fees, which the towing company could still pursue you for if the vehicle itself cannot be sold for enough to cover those costs.

If you want the vehicle gone, use the bankruptcy court to redeem it for scrap value, then get the title and junk it. Don't abandon it on someone else's property, or on public land either.

[spr250]

Not worried about it. It will become their property. I will come them once. If they dont grab by the deadline, storage fees will accrue. Then delivery charges. I will even post it was surrendered in a bankruptcy and list the current owner (the lender).