Totally Freaking Out....Please Help!

[lostinflorida]

We are looking at filing bk first of Dec. We have 3 vehicles, one which is really our sons, but title is in our name and paid for, the other 2 are ours and we're upside down on. Also, we have a boat that we're upside down on.

We haven't made a boat payment since May....car payment since July...and truck payment since Aug. Problem has become insurance. We no longer can afford the insurance payments on the car and boat so we made the decision to go ahead and voluntarily surrender them to the lenders. We turned the car in today and we are waiting for the boat repo man to call us shortly so we can meet him in town to give him the boat (didn't want the neighbors gawking).

I was feeling better about finally moving forward with some of this, but now I am starting to panic wondering if we should have done this or not. Does voluntary surrender make a difference when you go to file bk as opposed to repo?

I hope I am making sense, I am so panicky, I am sure I am rambling. Nerves are getting to me. I just want to make sure that we will be able to file bk on the deficiency amounts that are sure to occur when the lender sells the items at auction.......

[BassBoy]

Yes, you will be able to discharge the definciencies. The voluntary surrender doesn't really affect the outcome of your BK. In fact, it won't get you any sympathy or any "points" for doing so.

[justbroke]

I was feeling better about finally moving forward with some of this, but now I am starting to panic wondering if we should have done this or not. Does voluntary surrender make a difference when you go to file bk as opposed to repo?

When filing for Bankruptcy, nothing matters anymore... at least to me. The Bankruptcy trumps everything else. Especially a Chapter 7, which will be reported for up to 10 years on your credit report. Nothing else, other than a Foreclosure or judgment, stays that long.

I'm not a lawyer and haven't experienced your scenario personally, but I would only wonder if you'll be hit with any deficiency. In any event, you can discharge the deficiency in the Bankruptcy, since you turned them in before filing (pre-petition).

So, you're covered either way. I personally think it was a smart move to get rid of the liability since you couldn't afford the insurance anyhow.

[lostinflorida]

Can you explain more?

When filing for Bankruptcy, nothing matters anymore... at least to me. The Bankruptcy trumps everything else. Especially a Chapter 7, which will be reported for up to 10 years on your credit report. Nothing else, other than a Foreclosure or judgment, stays that long.

I'm not a lawyer and haven't experienced your scenario personally, but I would only wonder if you'll be hit with any deficiency. In any event, you can discharge the deficiency in the Bankruptcy, since you turned them in before filing (pre-petition).

So, you're covered either way. I personally think it was a smart move to get rid of the liability since you couldn't afford the insurance anyhow.

I didn't make it very clear what I meant...I know voluntary doesn't get us any good points, but I just started worrying that maybe since we did it voluntarily that we wouldn't be allowed to include it in the bankruptcy...I know better because I've been reading a lot on here, but somehow when you actually do it, you start to second guess things.

I'm wondering why you would doubt that we would be hit with the deficiency's. I can guarantee you that they can not sell the car and boat for what we owed on them. If there was a possibility of doing that, we would have done it ourselves. I would say the boat will probably sell for at least $4000 less possible as much as $7000. Car....I don't know for sure, it was a very nice car, my husband is traumatized about losing it...2005 Mustang GT Convertible, black on the outside, red leather seats, awesome car, but even at that, I doubt that anyone would buy it for our loan balance.

Sorry, starting to ramble again....anyway, we did meet the boat repo man about an hour ago. He drove from 4 hours away to meet us at the Home Depot in town, because we didn't want him to come to our house. He had to call me about 5 times for directions! We told him he needs to invest in a gps. He said he just started doing this as a side job because his regular job has gone down the tubes and now he is struggling himself to make ends meet.

The lady at the credit union where we returned our car was very pleasant and went to great pains to make us feel better about things. She said she hasn't seen the economy this bad as far as she can remember, not even back in the 80's....told us that we were lucky we were only losing a car, many people are losing homes. She was very pleasant and I really appreciated her attitude because I was so stressed I don't think I could handle it if she had been rude.

Thanks to all who are so patient on here and take the time to answer questions even though they have probably been asked a 1000 times!

[Cali]

I filed then surrendered my SUV. My attorney and company knew when I filed I was surrendering it.

[justbroke]

I didn't make it very clear what I meant...I know voluntary doesn't get us any good points, but I just started worrying that maybe since we did it voluntarily that we wouldn't be allowed to include it in the bankruptcy...I know better because I've been reading a lot on here, but somehow when you actually do it, you start to second guess things.

You'll be fine, lostinflorida. The worse part of Bankruptcy for most people, is the stress. There's really nothing to stress about unless you were actually trying to defraud creditors or hide assets. Sounds like you are open and honest.

I filed Bankruptcy to save my home(s). I decided to let one of them go anyhow. I really didn't even understand what Bankruptcy could do for me until I actually filed (well, maybe 2 weeks prior). I should have stayed in my residence and saved a bunch of money, but I was afraid of a pending sale so filed 5 days before the sale. Now I learn I could have stayed there for some time while the Chapter 13 plan is worked on and the dust settles. Oh well... could have saved $$$$$ more money.

In any event, we all learn. That's what is great about this site. We share our experiences and find comfort in hearing other people's experiences with BK.

I know that people can get attached to their cars, especially if they worked hard to get them. However, if the cost of the car is dragging you down, then there's nothing you can do. Take care of yourself and family first.

If you're upside down on the cars, this is a good time to get from underneath that. Especially since most folks are going for fuel efficient cars these days. It may be better in the long run.