Vehicle surrender question

[genseeker]

Hubby & I will be filing BK in near future. Ordered "Personal Bankruptcy Simplified" by Daniel Sitarz and waiting for it to arrive. I've already started to get our info together because we (I) will be filing pro se. We currently have a 2007 truck that is the main cause of needing to file BK. We have been unable to keep up with the payments on time for the past few months and I see no way to manage considering changes we know will be coming financially. So I had recommended to hubby we file BK & cut our losses vs truck getting repo.

We are going tomorrow to pick up a used vehicle we bought down where my family lives. We know we need to get filed before they send a repo letter to avoid having a repo on credit reports.

I am aware that the bank cannot come and get the truck until the BK court lifts the stay. But can we take it to one of the branches and drop it off? Where we live in VA, vehicles must be tagged and have a tax sticker or they get towed. The sooner we turn it over to them, the sooner we can cancel the insurance and turn in the tags and no longer be liable for the truck.

[JRScott]

After you file I do believe you can take it to one of their dealerships and turn it in.

Even if you are filing Pro Se I would suggest 3-4 or more free consultations with BK lawyers in your area.

This is a question you could ask during the session.

The book is pretty good I have a copy of that one.

[marzipan13]

a number of people on here told me that you're unable to surrender the car before the stay is lifted.... the motion to lift the stay can be voluntary (you filed the motion) or involuntary (bank filed the motion), and it needs to be signed by the judge and trustee... since the car is considered property of the trustee once you file.

for my car, i filed intention to surrendered... dropped the insurance, removed the tags, and put the keys in the glove box... i've called the bank and their lawyer many times to come pick up the car, but they can't do it until after the stay has been lifted.

[genseeker]

Gonna add on here instead of a new thread.

We filed Pro Se 9/5 and filed intention was to surrender. I had no idea how to file the motion to lift the stay so decided I would let the bank do it. Well, 9/21 they came and took the truck w/o lifting the stay. At our 341, we told the trustee the bank already took the truck and he looked over our paperwork and asked if it was taken after we filed & we said it was. He then commented he did not see a motion to lift the stay and he was given a printout from DMV showing the bank had a lien.

We were sent notices about the repo and sale and everything was done right, except they are in our BK. Well today we both got another letter from them. It seems they have filed a "warrant in debt" here in VA for the deficiency balance plus fees. I have checked the court website and have the case # which was not included on the paper we received.

We both did not use all our homestead exemption and I am wondering if we may now have a gift in our hands. Obviously, we could bring this to the attention of the BK court and the bank would get in trouble.

Here is what I am considering suggesting to hubby:
1. Send a letter to the bank president pointing out the acct is IIB and include a copy of the filing and the creditor list showing whom the clerk notified. I don't know if I could specifically ask for something showing just the bank as notified.
2. Offer to settle w/ the bank for whatever amount we coud still cover with our remaining homestead exemption. We know we will be moving out of state within the next yr or 2 and don't plan to buy a home in this state.
3. File a new homestead exemption for the remainder to cover a settlement from the bank.
4. Additional requirement to settle would be they remove the account from our reports within XX business days and provide us proof the requested removal.

Another question though, in what order are creditors paid and how? Since the vehicle was surrendered we have no secured debts. We do have student loans and unsecured priority debts on our filing. Would the unsecured priority debts have to be paid in full before the student loan or unsecured debts got anything? If so, we could increase the amount we will settle for so we can ensure the unsecured priority debts are PIF.

To be honest, I am NOT going to let the bank get away with this. However, I would prefer not to have to go to court over this because we would have to find an atty. I realize it should be easy to get a consumer atty to handle the suit & file a counter-suit but lawsuits take time and I would rather be done ASAP.


Any suggestions/remarks/opinions

Do we really have them by the short & curlies?

[rrockinggramma]

You filed a chapter 7 right? You should only have to let the bank know that you have filed, that the vehicle was repo'd without lifting the stay, give them the case number and let them know that if you ever hear from them again, you will take action against them for taking away the vehicle without lifting the stay. Nobody gets paid in a chapter 7 unless you are an asset case?????