At a loss..Please someone help

[Upset]

My parents co-signed for my car & they filed Chapt 7 in January. Their lawyer told them that I was going to loose my car. My husband talked to Ford & they told him that they don't care what the co-signor does. It is our car, our debt. My parents just got a letter from the BK court stating to call Ford & tell them where the truck is so they can come & get it. If that happens we will still be responsible for the balance of what Ford can't sell it for. I just moved & just happened to leave that vehicle at my parents house until I was able to go get it. My Dad called Ford & told them where it was . My Husband told my brother to go get it & move it from their property. I don't get how my parents would even make a call like that on a vehicle that isn't even theirs. I am so upset with my parents I could cry. Anyone have any input on this? I just don't get it!!

[Upset]

Hope I didn't ramble on there, I am a little upset. My parents said the got a letter in the mail from the BK court titles "Relief from automatic stay" From what I read the letter advises them that with this letter they can call ford to get the vehicle back & they are no longer responsible for the debt. AM I CORRECT? but since my mother is only the co-signor he shouldn't have called Ford. Now Ford says they are coming to get it.....but we don't want them to. I just can't believe my Dad would just call them & not talk to us first.

[StartingOver08]

Ford was notified of your parents filing by the Court when they filed BK.

Ford also is notorius for repossession the vehicle if there is no reaffirmation signed by the debtor. That is Ford's standard response. Ford would then naturally file a "Relief from Automatic Stay" as the first step to pick up the car.

See this link about Ford and repos in bankruptcy: http://www.************************/...-and-keep-pay/

The fact that you are a co-signer is a complication. Normally the co-signer keeps making payments and they keep the car. But Ford is a special case and I am not sure how that works in this context. Maybe someone else on the board knows.

[Mi Bankruptcy]

You are the original borrower correct? If so, call Ford. If your payments are on time this shouldn't be a issue. Your parents just protected themselves encase you default on the loan.

[Brighterdays]

I would get the vehicle ASAP. You have more bargaining power with ford if you have the vehicle. I am not an attorney, but I use to be a new car slaes manager for a ford dealership, What they are doing is legal, as bad of a business decision as it is.

Need more info to help you out.

1.) Have you been current (never late) on all your payments?
2.) Do you have positve equity or negative equity in it. Did you put money down?
3.) Is your credit strong enough to finance the vehicle yourself?

If you have been never been late and the truck is worth less than you owe, then ford should bargain with you. You need to call ford motor credit(# on you payment coupon) and tell them your situation.

If you have been consistently late or you put a huge downpayment on it and it has positive equity, then your fight might be even harder.

All ford does is take the car straight to auction. And take a huge beating on it. They have to pay auction, cleaning and other fees. It is in their best interest to let you keep it. Not that they will, but if you have the vehicle and clean record with them, it will help. good luck

[Upset]

We are the Main Borrower. My Mom co-signed. I was current until they filed for BK. Their lawyers said stop paying cause you WILL loose it. Stupid us believed him & we are just behind the 2 payments. We put no money down on it so it is worth less then we owe. We told my brother to move it away from their property & my parents are yelling at him for it. We just want to move it to have time to straighten it out.

[Brighterdays]

So your credit probably took a ding from the late payments. IT sound like the lawyer was telling your parents what to do. If you have the ability to catch up on your payments you can call ford and tell them you are willing to resign the loan without your parents and catch the loan up. Don't pay them with out getting stuff in writing first.

Second thought, if you have the money, you can always use that as a downpayment on another vehicle. Be careful with the buyhere payhere places.

[Upset]

Well here's the thing...Since their lawyer told us we are going to lose it we did go out & buy another vehicle. But we still wanted to keep this one for my daughter who is 18 & wants a car. But if we left Ford take it & they only sell it for $12,000 & we owe 19,000 on it we will still be responsible for the difference right?

[Brighterdays]

I am not sure of your liability. You can try to sell the truck your self if you are on the hook, but that might be difficult. If you do try everything to keep it, it will add ammunition if you have to hire an attorney.

Your best bet is still to call ford and try your best to reconcile. If you hear "NO" then ask to talk to their manager.

[StartingOver08]

Yes you are responsible for the deficiency on the vehicle. You and a co-signer signed the note - the co-signer is in the process of getting their liability discharged from the note so you are stuck with the it. Normally you could just continue making payments - but the complication is Ford. That is probably what your parents' attorney was referencing when he stated that the vehcile would be repo'ed.

1) Do as the others suggested, see if you can work it out with Ford directly or
2) Contact your own attorney to see what can be done to work out something with Ford.

[OhioFiler]

Seems odd to me. It appears the title is in Upset's name. The parents were co-debtors but Ford still has an agreement with Upset. Upset is still liable for the loan so why would Ford want to repo the truck? If he's current on his payments I don't even think they can repo it. I would get current if I were Upset and tell Ford I plan to keep paying for the truck as the primary borrower.

If the title is in Upset's name how can the bankruptcy court do anything with the truck? The asset is owned by Upset not the parents.

[StartingOver08]

Seems odd to me. It appears the title is in Upset's name. The parents were co-debtors but Ford still has an agreement with Upset. Upset is still liable for the loan so why would Ford want to repo the truck? If he's current on his payments I don't even think they can repo it. I would get current if I were Upset and tell Ford I plan to keep paying for the truck as the primary borrower.

If the title is in Upset's name how can the bankruptcy court do anything with the truck? The asset is owned by Upset not the parents.

Upset is 60 days behind.

[dingdong]

Call Ford, ask for the loss mitigation dept. Tell them you were confused about the information you received from your parents BK lawyer. Ask them if they can forebear the 2 payments you missed, extend the loan for 2 months, and pay the next months payment right away.

Tell them you want to keep the truck and are willing to work with them.

Keep going up the chain of command ( ask for a supervisor) until you get the answer you want. Be persistant.

They aren't in the business of taking upside down cars, they want you to keep paying.