HELP!! not sure what to do about car

[babynurse31]

I am planning on filing before the end of the Month. I am filing alone, planning on Chap 7. I'm trying to decide what to do about my car & thought I'd ask for some opinions. I owe 22000 on my car, it's worth about 17000. Obviously, the best thing to do would be to surrender it but I need the payment $$ for the means test. If I note that I plan to reaffirm the car, it's stays included in the expense calculations.

Could I then turn the car in post discharge anyway?

Is that considered fraud?

Do I need to continue making payments between filing & discharge?

What if I am 30 days late on the payment on the day of filing, does that make a difference?

If I say I'm surrendering the car in the filing, it won't be considered in the expense calculations, right?

I don't want to do anything fraudulent, but want to plan this right.
Thanks for your help

[StartingOver08]

You are doing the right thing:

In your statement of intentions you can reaffirm for the filing. You can even try to negotiate a reaffirmation agreement with the lender Some will - some won't. If they will not renegotiate, you can surrender your car. All you have to do is refile the statement of intentions with showing that you are surrendering - but you need to file the change before discharge.

I did that exact same thing - it worked for me. The only mistake I made was calling the BK dept after discharge and making arrangements right away for pick up - they picked it up within 5 days. I should have let them contact me - I'm sure I would have had much longer.

[babynurse31]

If I change the intention to surrender before discharge, will the means test be recalculated therefore making me ineligible for Chapter 7. I am over the median income but I pass the expanded means test.

Also, does it make a difference if I'm 30 days behind when we file? I hate to send them the $600 if I it won't make a difference.

[babynurse31]

Anybody have any insights on these two questions.

Will I have to redo my means test if I change my intention after the 341?

What if I am 30 days late on the car at the time of filing?


Thanks guys!!

[StartingOver08]

Anybody have any insights on these two questions.

Will I have to redo my means test if I change my intention after the 341? Nope! You do your means test in the beginning. If you change your Statement of Intentions after your 341 you do not have to redo it at all.

What if I am 30 days late on the car at the time of filing? I don't know about this one....I was told I had to be current on the car AT the time of filing. (Not after) Ask your attorney.


Thanks guys!!

Hope this helps.

[Doghouse]

My lawyer just file for me Friday. I filed with intent to keep or re-affirmed my car (on the notice of intentions) although I do intend to renegotiate with the lender later and if we can't agree then I will surrender the car and not sign a re-affirmation agreement. Your means test is not affected or redone because you change your intention after the 341. I did not make last month's auto payment due as well. In fact, same goes with your house. I have not made a mortgage payment since Oct '08 yet the mortgage amounts are included in my means test calculations.

[jessegirl]

This is what we did - We filed our petition showing my truck payments, it was a lease. In the petition it was included in the means test and the schedule. I kept the truck and NEVER reaffirmmed the truck. They sent the papers, but my attorney said not to sign them. I kept the truck until the day after discharge and then I returned it myself to the car dealer at night with a note. I then called the next day and told them were the truck was and they were actually very nice about it. I never reaffirmed so I do not owe them anything. I had 8 months left on the lease and was over 45K miles!!! I would of owed a ton of money if I would of kept it until the end of the lease. Now I do not have any obligation to the lease or any over mileage charges or anything. So if you can continue to pay on it and NOT reaffirm the loan, kept until discharge and then get something. I was lucky and had ford give me a 0% loan. MY payments are a few hundred dollars less then what I was paying for my truck so I am happy.

Also, my attorney made sure that I was current on the truck when we filed. I think you need to be anyways.

It i not considered fraud at all. You just don't sign the reaffirm and they cannot come after you if your BK 7 is discharged..

I wish you Goodluck...

[TEW]

I am planning on filing before the end of the Month. I am filing alone, planning on Chap 7. I'm trying to decide what to do about my car & thought I'd ask for some opinions. I owe 22000 on my car, it's worth about 17000. Obviously, the best thing to do would be to surrender it but I need the payment $$ for the means test. If I note that I plan to reaffirm the car, it's stays included in the expense calculations.

Could I then turn the car in post discharge anyway?

Is that considered fraud?

Do I need to continue making payments between filing & discharge?

What if I am 30 days late on the payment on the day of filing, does that make a difference?

If I say I'm surrendering the car in the filing, it won't be considered in the expense calculations, right?

I don't want to do anything fraudulent, but want to plan this right.
Thanks for your help

This is what I did. The only thing was I did keep the payment current until after my 341. I didn't want the trustee to have a motion for relief of stay sitting there and my number didn't work with out the car.

[babynurse31]

so it seems I may need to bring it current before filing . I hate giving them $600 for nothing if they don't want to neg. to bring the balance down. Put I need to the payment on my numbers & I need a car until to get me through until discharge when I can buy a cheap car!

I'll be so glad when this is all over!!

[mscyg]

Be careful!!!

I have read alot of posts about just riding the loan out until your discharge then you can get another vehicle, but be careful because I did that and I'm now in a situation where the lender filed a motion to lift the automatic stay given by filing bankruptcy. Now after May 7, thay can come at any time and get the vehicle. And the fact that I have not been discharged further complicates the issue. So, I can play the dodge game for 3 or 4 weeks, buy a piece of car to get back and forth, bus it (really not an option), or rent an vehicle (it will have to be someone else's card b/c all of mine were included). Not sure what I am going do but I need to figure out something...soon!!! Just giving you a heads up!!!