Car repo before filing

[tomuchtohandle]

My car is 3 months behind in payments. I got the pay by..... letter. We planned on letting the car go in the bk but haven't filed yet. Hope to file end of the month. Anyways my question is the car is not worth what we owe. Will I be liable for the difference or can that be discharged? Right about now I want to rip my hair out. Not that i think filing should be easy but jeeze!!Just can't wait to get things rolling. Need a new start.

[lrprn]

Will I be liable for the difference or can that be discharged?

The way I understand it, if you surrender the car before filing, then you will owe the difference between what the car sells for at auction and the amount you owe on it. However, if you voluntarily return the car to the lender before it's repossessed, then I believe you can list this debt and wipe it out when you file since the lender now has possession of the asset anyway. This is an excellent question to ask your lawyer. If you haven't retained a lawyer yet or plan to file without one, this is a good question to ask during free consultations with several experienced bankruptcy lawyers in your area.

If you file before the car is repossessed, then you can legally surrender the car as a part of your bankruptcy. As long as you do *not* sign a reaffirmation agreement, you won't owe anything on it.

Here's a good online review of your repossession rights - http://www.carreonandassociates.com/...eposession.htm . Hopefully this will help you sort things out too.

[keepmine]

It does not matter if the car is surrendered voluntarliy or, repoed. Any deficiency balance is an unsecured debt and may be discharged in bk.

[CindyLou]

If you include the car in your BK it doesn't matter when it you turn it in. If you include it and don't reaffirm then drive away until they pick it up. In fact, by filing it could delay it until they request the automatic stay to be lifted.

[LisaM]

My husband and I voluntarily surrendered our car a few months before filing. The car sold at auction and we were sent a bill for the difference. We had been planning to file BK, but I wanted to wait until we got the paperwork from the car lender first.

Once we got the bill for the difference of what was owed and the auction price, we filed it with our BK, which was thankfully discharged with no problems.

Good Luck!

[tomuchtohandle]

thanks

This forum has been such a great help. Sometimes when i think it is all to much I read others post and feel like I CAN DO THIS!!!

[SinkingFast]

As I understand it,........... If you can stave off the Lender until after you file, then you won't have a repo show on your Credit Reports. If you surrender the car in BK, there is no repo. Just a thought for you.

One suggestion I would make,............ Don't leave any personal belongings in the car at any time. You never know when or where the "Repo Man" will show up to take the car. You may or may not get your things back if the car is taken.

[CindyLou]

As I understand it,........... If you can stave off the Lender until after you file, then you won't have a repo show on your Credit Reports. If you surrender the car in BK, there is no repo. Just a thought for you.

One suggestion I would make,............ Don't leave any personal belongings in the car at any time. You never know when or where the "Repo Man" will show up to take the car. You may or may not get your things back if the car is taken.

2 VERY good points!! On the first, you would be much much better with a IIB on your report instead of a Repo. Hold them off until you file....I drove mine til the actual repo man called me. There will come a point where the creditor stops calling and the repo man starts. That's when the game stops. The repo man will find it. Don't leave anything in it that you don't mind losing. It takes an act of congress to get your personal belongings out of a repo!!

[suitelady79]

Oops I made a boo boo then...the repo man couldnt find my car suprisingly. I kept it in the garage and they didn't know where I worked but I'm sure in due time they would have picked it up at my job...oh well. I turned the car in 2 days before my file date..

[CindyLou]

Well, if thats the worst that happens, you're all Good!!