giving up only vehicle

[okiemom2008]

Just a quick question...only working vehicle we have is a 08 Durango..worth 10k we owe 28k on it. We are current until January 9th. We are retaining lawyer on Dec 29th and trying to file by February 1st.

We are not going to re-affirm or 722 the vehicle. But it is our only vehicle and all our extra money is going to the lawyer. We cannot file until we pay him completely.

We are not going to make the Jan 9th payment. It is with Chrysler Financial. How long do you think, in your opinion we have until it gets repo'd? I don't know what to do because we don't have any money saved for a vehicle. Should we go out and try to buy one right now..like one for 5k or so and try to finance it?

Thanks

(I accidently posted this on someone else's thread earlier...sorry about that!!)

[justbroke]

You should have at least 31-60 days before there are threats of repossession. Generally, they'll tell you first. Just answer the phone and tell them you're trying, but just can't pay now. Don't offer any other details... like you're filing for Bankruptcy, or that you're never going to pay them.

So, if you're really filing 2/1/2009... stop paying them immediately!

[okiemom2008]

You should have at least 31-60 days before there are threats of repossession. Generally, they'll tell you first. Just answer the phone and tell them you're trying, but just can't pay now. Don't offer any other details... like you're filing for Bankruptcy, or that you're never going to pay them.

So, if you're really filing 2/1/2009... stop paying them immediately!

Ok, great. So if I dont pay the 1/9 payment by 2/1 when we file-we will be 22 days late. But then they will get a letter from lawyer or us saying we are filing and then they will come get it since we are giving it up? Basically I am wondering how long I have to save up for a new vehicle before that one gets repo'd and if I should go finance a used one (maybe a 5k or less one?)at a local lot so we have a back up car

[drowningNdebt]

I would say it will take 90 days for Chrysler to repo it. However, once you file there is a stay in place law where they can't repo it until after discharge. That alone is 90 days! So it could be more like 180 days till they come get it.

[justbroke]

Ok, great. So if I dont pay the 1/9 payment by 2/1 when we file-we will be 22 days late. But then they will get a letter from lawyer or us saying we are filing and then they will come get it since we are giving it up? Basically I am wondering how long I have to save up for a new vehicle before that one gets repo'd and if I should go finance a used one (maybe a 5k or less one?)at a local lot so we have a back up car

Once you file... bam! An automatic stay (restraining order) is put into affect. This bars the lender from repossessing the vehicle until the earlier of a.) they file a motion for relief from stay and are granted the relief, b.) you are discharged and closed and did not re-affirm the vehicle, or c.) you redeem the vehicle (by paying off its present value).

If you finance a used one NOW... that WILL be included in the Bankrutpcy as well.

[okiemom2008]

I would say it will take 90 days for Chrysler to repo it. However, once you file there is a stay in place law where they can't repo it until after discharge. That alone is 90 days! So it could be more like 180 days till they come get it.

Wow, I did not think it would be that long. So making the payments is buying us alot of time, right? If they cannot repo it until after discharge we could probably save enough to buy another vehicle by that time.

[okiemom2008]

If you finance a used one NOW... that WILL be included in the Bankrutpcy as well.

I see. And if we included it but wanted to 722 or re-affirm it we could keep it? I don't know..I want to just hope they don't take it but Chrysler Financial is on our backs after day 1 late..every 30 minutes constantly bugging us and I think they probably don't go by the laws and would probably repo it anyways. We will probably take the chance and hope it is there every morning!

Thanks!

[cptne33]

Out of curiosity....how do you have a 2008 Durango that is worth only 10K but you owe 28k on it? Seems like a huge disconnect.

[okiemom2008]

Out of curiosity....how do you have a 2008 Durango that is worth only 10K but you owe 28k on it? Seems like a huge disconnect.

We bought it for 30k in October 2007. When we met with lawyer he kelly blue book'd it and it said 10k. So he said we could give it up or do a 722 on the 10k and pay monthly payments on it. We ar egoing to give it up. So it lost its value quick

[yellowstone]

Wow, I did not think it would be that long. So making the payments is buying us alot of time, right? If they cannot repo it until after discharge we could probably save enough to buy another vehicle by that time.

A secured creditor can petition the court for stay relief to foreclose a mortgage during the automatic stay. I don't know of any reason why they could not or would not do that with a car, because the costs of seeking stay relief are pretty low, as the petitions are very simple and can be easily prepared by a paralegal. Until they seek and are granted stay relief, they can't repo your car.

[okiemom2008]

A secured creditor can petition the court for stay relief to foreclose a mortgage during the automatic stay. I don't know of any reason why they could not or would not do that with a car, because the costs of seeking stay relief are pretty low, as the petitions are very simple and can be easily prepared by a paralegal. Until they seek and are granted stay relief, they can't repo your car.

ok, great. Thanks

[Keebler]

We had a 2006 GMC that we owed about $18,000 on. The payments were just over $350 a month and we took a chance and stopped paying the payments and ended up filing almost 90 days later. The credit union didn't ever lift the stay and we dropped it off a week or two before our discharge. By that time we had saved enough to pay $1,700 for a well used car.

It was scary as hell and we were never quite sure how it would play out but it was worth being debt-free today.

The bank finally auctioned it off and got $12,000 for it. (It was worth $18,000 wholesale when we stopped paying.)

The $1,700 car cost us $500 for a battery and a set of tires plus an alternator. It is not too pretty to look at and it's well worn but it still makes us happy to drive it knowing that there's no payments to make. I don't regret the decision for a minute.

[okiemom2008]

We had a 2006 GMC that we owed about $18,000 on. The payments were just over $350 a month and we took a chance and stopped paying the payments and ended up filing almost 90 days later. The credit union didn't ever lift the stay and we dropped it off a week or two before our discharge. By that time we had saved enough to pay $1,700 for a well used car.

It was scary as hell and we were never quite sure how it would play out but it was worth being debt-free today.

The bank finally auctioned it off and got $12,000 for it. (It was worth $18,000 wholesale when we stopped paying.)

The $1,700 car cost us $500 for a battery and a set of tires plus an alternator. It is not too pretty to look at and it's well worn but it still makes us happy to drive it knowing that there's no payments to make. I don't regret the decision for a minute.

That sounds great. We thought about doing a 722 on it but we just want to not have a "car payment" and have something paid off. As long as it runs and has room for us it is fine by me. I checked on ebay and some of their vehicles are going for pretty cheap.

Who was your car financed through? Ours is with Chrysler Financial...ugh lol

[Keebler]

That sounds great. We thought about doing a 722 on it but we just want to not have a "car payment" and have something paid off. As long as it runs and has room for us it is fine by me. I checked on ebay and some of their vehicles are going for pretty cheap.

Who was your car financed through? Ours is with Chrysler Financial...ugh lol

The 2006 GMC was financed through a local credit union. We liked the truck alot but the payments made us less happy than the truck did.

You should realize that we were abnormal is several ways because we actually owed about what the truck was worth. Most people are upside down after buying a new vehicle with nothing down so we had done well.

The first thing I told our attorney was how the truck meant nothing and it was only a "transportation appliance." I don't love it and they keep making more so it isn't worth struggling for. I made it very clear that we intended to let it go and drive whatever we could afford. He laughed and told me how the first words out of almost everyone's mouth is "they aren't going to take my car, are they?"

[texanboy76]

If you finance a used one NOW... that WILL be included in the Bankrutpcy as well.

Okay I'm lost here. If you get another auto to try and reduce your payment and want to surrender the vehicle you are upside down on and late in payments then how is the new vehicle included in the BK?