Surrendering my vehicle

[AudriannasMa]

I am planning on filing for chapter 7. I right now have a vehicle that I can NOT afford and can not afford the insurance. I want to surrender it. Is there any difference/consequences if I surrender it before i file. I know that it will effect my credit score but I am filing Bk anyway! Any help or advice is greatly appreciated! TIA!

[StartingOver08]

Better to surrender in the BK. That way the vehicle shows IIB (included in bankruptcy). If you surrender before the filing your credit report will show voluntary repo. Why have two large negative events rather than one?

[AudriannasMa]

Better to surrender in the BK. That way the vehicle shows IIB (included in bankruptcy). If you surrender before the filing your credit report will show voluntary repo. Why have two large negative events rather than one?

Thanks for that advice, the problem is I am already almost 2 payments behind and I don't have any $$$ to pay for the insurance. I do not want to be driving around uninsured.
If I do decide to surrender it the difference will be discharged right?

[StartingOver08]

Yes, list the repo and the amount owed and it will be discharged when the rest is discharged. How soon are you filing?

[AudriannasMa]

I am planning on filing ASAP, hopefully within the next month. I am supposed to meet with the lawyer this week.

[lrprn]

Be aware that most car lenders will start serious actions - including sending the repo man for your car - after two missed payments. Be certain to take EVERYTHING out of the car that you need to keep, because it could disappear anywhere you might leave it. Getting belongings back when the car is in the repo lot is very difficult.

[debtmonster]

Be aware that most car lenders will start serious actions - including sending the repo man for your car - after two missed payments. Be certain to take EVERYTHING out of the car that you need to keep, because it could disappear anywhere you might leave it. Getting belongings back when the car is in the repo lot is very difficult.

That's what I thought. I'm now about 90 days past due and nobody has come looking for the car. The bank sent me a thing in the mail a month ago saying that I'm 2 payments behind and they want $1500 or so. I made a print-screen of my bank balance showing them that I only had $20 or so in the bank and asked them what I should do? They never wrote back. I keep the car in the garage anyway.

Another neat trick is, what happens if you swap cars with a friend? I was thinking about creating a web site that would allow people who are about to get their cars repo'd to go ahead and swap cars so that the repo man could never find it. Wouldn't that be neat?

Suppose you had a 2006 Chevy Cavalier and was 90 days late and a guy in the next town also had the same car but was also in the same boat? What if you and that guy swapped cars? You both kept the insurance on it but just stopped paying the note. What would happen? What could the banks do? Every time you drove the car to work it would be the other guy's car. So when the repo man came to look for your car with your VIN and matching plate #, it would never be in the parking lot. Wouldn't that drive the banks nuts if people did this? Yeah, I know you can't renew your license plate and what not... but this could possibly buy you a few months of having a car until you got the money to buy a replacement. We just renewed our plate, so I could drive this car until next year!! That would give me plenty of time to save money to buy a used car for cash money and not have payments. Problem is, I need a car in the meantime and can't afford $600-800/mo. to rent a car all month.

Any thoughts on this idea? Does a web site like this already exist?

[StartingOver08]

Debtmonster - what is to prevent a repo man from reading the site?

[debtmonster]

Debtmonster - what is to prevent a repo man from reading the site?

Even if they did, how is that going to help him find your car if you swapped out with a friend?

It's just an idea I was throwing around and I wanted to know the full legal consequences for driving a car for 12 months without making a payment.

[AudriannasMa]

Be aware that most car lenders will start serious actions - including sending the repo man for your car - after two missed payments. Be certain to take EVERYTHING out of the car that you need to keep, because it could disappear anywhere you might leave it. Getting belongings back when the car is in the repo lot is very difficult.

Yes! thanks you.
I have not worked in over 6months and last time I was just over 1 note behind and they sent somebody out luckily my dad loaned me the $$$. The good thing is I do not live at the address they have for me. I plan on cleaning it out however. I think I am going to surrender it this week.
I know I shouldn't because the negative effects on my credit report but at this point I don't want to risk it. My insurance expires this week and I have a toddler. I would hate for something to happen. I would also hate to be at the grocery store come out and my car be gone!!!

[debtmonster]

You NEVER want to let insurance ever get canceled on you. SR-22's are NOT COOL AT ALL. I would starve before not paying car insurance. Once you get on the "poopy" list for car insurance, your rates will be sky high for years to come.

[AudriannasMa]

You NEVER want to let insurance ever get canceled on you. SR-22's are NOT COOL AT ALL. I would starve before not paying car insurance. Once you get on the "poopy" list for car insurance, your rates will be sky high for years to come.

Yeah! the only thing is have have like $50 and no income coming in. Can't pay for the insurance!!

[debtmonster]

Yeah! the only thing is have have like $50 and no income coming in. Can't pay for the insurance!!

You don't let it lapse. YOU cancel it. Don't let THEM cancel you.

Tell them you got rid of the car or whatever and cancel it. I would work at Publix, Winn Dixie, Kroger or Piggly Wiggly as a grocery bagger just to make the minimum payment for that if I had to.

If you think it's bad now. Imagine having to pay THOUSANDS per year for car insurance. If that happened to me, I'd end up buying some $2,000 dollar scooter or motorcycle for cash money and use that to get around. It would suck to not have a car. Picking up groceries on a scooter or motorcycle is NO FUN. In Florida the only way to drive around without car insurance is to have a motorcycle/scooter with no financing or ride a bicycle.

I did the motorcycle/scooter thing for many years to avoid paying car insurance. But riding one in the cold weather is not for me. Luckily I lived in South Florida at the time. The rain absolutely sucked.

[relief13035]

I would work at Publix, Winn Dixie, Kroger or Piggly Wiggly as a grocery bagger just to make the minimum payment for that if I had to.

You guys have some WILD store names. LOL

[StartingOver08]

LOL! Look who's talking - don't you all have Ralphs???! LOL!