Giving up a car before first payment is due

[funcritter]

I posted a while back on advice about filing chapter 7. Back on September 29, I bought a new car with intentions of keeping it when I file sometime in December. Since then, I have come to the realization that I really don't want this car. My only inention of buying it was to get rid of the trade in and I have done that. The payment is supposed to be due this weekend but I have yet to get a bill on it and I don't even know if the loan was approved (They wanted alot of proof of income due to the current economy).

Is there going to be a problem on getting rid of this car on my chapter 7? I know the loan company will be extremely upset and I really hope they are.

[DaisyMae]

Should you make the payments to help you pass the means test?

You can get rid of the car later after you file. Just don't sign a reaffirmation.

[danaf]

I'd be careful with this one. You should keep the car for now....make ontime payments. Include in bk and don't sign reaffirmation like last poster suggested. This secured payment will also help with your means. Then after the bk is through you can give it back to the bank. Not paying now will cause you problems you do not want and they will very likely object during your proceeding.

[landofpoor]

I posted a while back on advice about filing chapter 7. Back on September 29, I bought a new car with intentions of keeping it when I file sometime in December. Since then, I have come to the realization that I really don't want this car. My only inention of buying it was to get rid of the trade in and I have done that. The payment is supposed to be due this weekend but I have yet to get a bill on it and I don't even know if the loan was approved (They wanted alot of proof of income due to the current economy).

Is there going to be a problem on getting rid of this car on my chapter 7? I know the loan company will be extremely upset and I really hope they are.

I am kinda confused on why you hope the loan company will be extreemly upset as you hadnt made a payment on it even so there cant be no bad blood between you and them yet ID think.But I did get a good chuckle out of it lol

[funcritter]

I'd be careful with this one. You should keep the car for now....make ontime payments. Include in bk and don't sign reaffirmation like last poster suggested. This secured payment will also help with your means. Then after the bk is through you can give it back to the bank. Not paying now will cause you problems you do not want and they will very likely object during your proceeding.

Well the problem is, is that I will will have trouble coming up with the cash to make the first payment. My mortgage payment is due at the same time then there will be the licensing fees.


What happens if I simply don't make the car payment? How long will it take for them to come and get the car?

I really need to give up this car. The monthly payment is sky high, nearly $500.

For the other poster, I was hoping this really gets the lender upset because they gave me such a hard time by asking for all kind of proof of income from three months check stubs to three months bank deposits. I bought an 06 Chevy 2.5 years ago and paid it off in a year and this time, the lender wanted all this proof of income.

[TEW]

If you are already file then you can call the bank and ask them where they would like the car.

[DaisyMae]

A month after buying a car you can't make the first payment?

I'd suggest that you are not prepared to file a bankruptcy, there are lots of details to consider, you seem to be acting in haste and at random? Aside from that they, will repo the car when they want to, the day you are delinquent that can happen, or anytime after that. (But I can see people will be doing what you did in depseration to get out from vehicles they are hopelessly upside down on. That's only going to escalate).

[Ugh07]

For the other poster, I was hoping this really gets the lender upset because they gave me such a hard time by asking for all kind of proof of income from three months check stubs to three months bank deposits. I bought an 06 Chevy 2.5 years ago and paid it off in a year and this time, the lender wanted all this proof of income.

So they went through all that trouble and they still screwed up as you intend to become a first payment default. Man, you are gonna show them, that will teach them to dare to ask someone to verify they have an ability to pay back a loan.

[hereforinfo]

I really need to give up this car. The monthly payment is sky high, nearly $500.

Then why did you sign a contract to pay for something you can't afford? I think what you're doing would send up a huge red flag in your bankruptcy proceedings, and rightfully so.

[JRScott]

If you've not received a bill for the car, call them up and ask where the bill is. That seems pretty simple. Just make sure to inform them that you did not get a bill. (I'm assuming you've not filed bk yet, if you filed and included them then they can't mail you a bill...just call and ask to speak to the bk dept.)

[DaisyMae]

Re-reading that post I note something-

It's possible that even by now your financing won't be approved- and that MAY be why you have yet to be billed. Same thing happened to a distant relative- she was not approved even tho she had possession of the car, while the dealer was trying creative ways to GET her approved. A month later they told her to bring the car back!

[Never_Again]

It's possible that even by now your financing won't be approved- and that MAY be why you have yet to be billed. Same thing happened to a distant relative- she was not approved even tho she had possession of the car, while the dealer was trying creative ways to GET her approved. A month later they told her to bring the car back!

That is called a "spot delivery" and happens more often than you think. I think that it has been happening less lately, but it still does.

Gee, I can't imagine why the bank would have asked the OP for all of that proof of his ability to pay! But, then again, I can't understand why they would have let him drive off with it anyway.

[funcritter]

Then why did you sign a contract to pay for something you can't afford? I think what you're doing would send up a huge red flag in your bankruptcy proceedings, and rightfully so.

Well, I fully intended on keeping th car and paying for it. I of course did not take into account the cost of filing a chapter 7. If I have to pay for the car and my mortgage, well, it will be a very long time before I can afford a few thousand that is needed from reading these forums to file. I stopped paying my credit cards in October so the clock is kind of ticking.

It's possible that even by now your financing won't be approved- and that MAY be why you have yet to be billed. Same thing happened to a distant relative- she was not approved even tho she had possession of the car, while the dealer was trying creative ways to GET her approved. A month later they told her to bring the car back!

I hope this is the case. I should give them a call the dealership today and see what's going on. This would be the easiest way to give up this car.

I work two jobs, one of the is pizza delivery and on this job, I don't report all of my tips. This is why they required all this extra proof of income because my monthly income as stated on my paystubs wouldn't cover my car payment and mortgage at all. It was never a problem in the past in getting a new car but the economy was much better two years ago when I last got a new car.

[allavdj]

"I stopped paying my credit cards in October so the clock is kind of ticking"

I stopped paying on mine about 2 years ago, my clock is ticking. The credit card companies automatically report if your payments are on time or not, so if you've missed payments, it's already hit your credit report.

My advice would be sit on the car for as long as possible, forget the lawyer for the moment and buy a cheap car so you can keep your delivery job. Then start saving for your lawyer and BK.

[funcritter]

"I stopped paying my credit cards in October so the clock is kind of ticking"

I stopped paying on mine about 2 years ago, my clock is ticking. The credit card companies automatically report if your payments are on time or not, so if you've missed payments, it's already hit your credit report.

My advice would be sit on the car for as long as possible, forget the lawyer for the moment and buy a cheap car so you can keep your delivery job. Then start saving for your lawyer and BK.

I already have a car that is payment free. The reason I was buying a second car was to keep the miles off the one that is paid off since it was about $10,000 more in price then the new one. I'll be using the one that is paid off. If you read the rest of the replies here, you will see that I may not have even been approved on a loan for the new car so it may just be a short time before the car goes away anyways.

So for you, it's been two years and the credit card companies haven't done anything yet to get their money?