Sell vehicle to pay off secured loan?

[KP1980]

I have been trying to sell my car all year to pay off the secured loan. I just filed chap 7 and finally got a buyer.

Can I make this transaction prior to my discharge, even prior to my 341 meeting?

I did plan to reaffirm unless it sold. I am joint on the account. I filed as an individual. The loan has negative equaity, so I have to put in money.

I need to file my intentions form within the next week. What are my options?

[JRScott]

I would wait until after your 341 to sell the car.

The danger is that the Trustee at the 341 will ask, are there any changes?

Truthfully you'd have to answer, yes I have sold the car.

He will then want to see the bill of sale, and receipts for what you spent the money on. He could in theory undo the sale if the car is sold for less than market value. He could also then challenge a car payment listed on your expense schedules since you'd no longer have it.

By waiting til after the 341 you miss this danger and it would probably slide.

If you filed with a lawyer I would call him and get his take just to make sure what I'm telling you is true.

[BROKENN]

I was told no selling before 341!

[krielly]

Once you have filed, your assets become property of your BK estate. You cannot sell your vehicle without permission from the trustee......

[KP1980]

Should I call the trustee? Or is this a no-no. I do not have a lawyer.

If I sell the car, I will pay off the loan in full. The loan is for 8,000. I will be selling the car for 7,000. I stated the car had an estimated value of 7,500. I have no equity in the vehicle! I just dont want the payment anymore.

[JRScott]

Well if you filed Pro Se and really have a buyer for the car then yes you'd have to call personally to the Trustee to get permission, but I'm not sure he'd give it. Like I said before he could object to the expense on your papers but if you didn't list it might not be a big issue for you, not sure.

[KP1980]

I did list the payment as an expense, but its only a small dent. I will make sure the payment does not effect my means test first.

I will call him and ask his permission. Im not making anything on the vehicle. I actually have to put $1000 toward it to get rid of it.

[keepmine]

Why on earth would you pay $1000 to sell a car when the entire debt will be discharged in bk? You got far better uses for a $1000.

[krielly]

For sure. Surrender the car, the difference between what you owe and what it is worth will be discharged!
Don't sell it!!!!!!!! No reason to pay out money you don't need to!

It won't affect your credit any differently one way or the other. The car will be listed as IIB (included in BK) on your credit report with that lender. You will not have both a BK 7 AND a Repo, if that's what you are thinking...........

K

[TEW]

I have been trying to sell my car all year to pay off the secured loan. I just filed chap 7 and finally got a buyer.

Can I make this transaction prior to my discharge, even prior to my 341 meeting?

I did plan to reaffirm unless it sold. I am joint on the account. I filed as an individual. The loan has negative equaity, so I have to put in money.

I need to file my intentions form within the next week. What are my options?

Why on earth would reafform a loan on a car you are saying you don't want?
stop paying for and hand it back to the bank.

[KP1980]

Its a joint loan!!! I forgot to mention. I cant surrender, or it would go solely in my husbands name. I just wanted to know if I can make that transaction prior to a discharge, because I finally have a buyer.
The loan is only a year old so I have negative equaty in it. The vehicle is depretiating.
Does that make sense?