How to handle talking to the CU regarding my vehicle...

[teacher]

I put surrender for my vehicle on the petition. I just got a call from them regarding my past due account (almost three months). What should I tell them? Should I say that I am filing and if they want to send a reaffirm (for less) to send it into the lawyer and I will look at it?

I *might* (big might) be willing to keep the vehicle and reaffirm at the book value, but most likely will not.

Any suggestions?

[OregonMom]

I had a family member who had a car, and equity loan through a CU and they wouldn't do anything with the car unless the equity loan was current. So they just gave them back the keys to the car because they wouln't do a thing. If you have a checking account with a CU make sure to close it before you default on any payments with them.

[teacher]

I had a family member who had a car, and equity loan through a CU and they wouldn't do anything with the car unless the equity loan was current. So they just gave them back the keys to the car because they wouln't do a thing. If you have a checking account with a CU make sure to close it before you default on any payments with them.

Well, my biggest concern is honestly this. I need the vehicle at least until the end of the month. So, I need to do whatever needs to be done to extend the time until then. I actually am willing to think about reaffirming if they lower it to book value, but that is a pretty big maybe.

[teacher]

I don't have anything else with them, loan only.

[LuciluS]

Does the vehicle stay at your home if/when you are not working. Is it in a garage with no windows? Possible, to put vehicle in a place CU is not aware of?

If it were me, I wouldn't call them back. If you are filed, then you should be in the 'Automatic Stay' & I thought they couldn't bother you. Maybe I'm wrong and someone will say so.

Luci

[teacher]

Does the vehicle stay at your home if/when you are not working. Is it in a garage with no windows? Possible, to put vehicle in a place CU is not aware of?

If it were me, I wouldn't call them back. If you are filed, then you should be in the 'Automatic Stay' & I thought they couldn't bother you. Maybe I'm wrong and someone will say so.

Luci

It isn't really a matter of repossession. I have already filed. It is a matter of when are they going to file a relief from stay to require me to return the vehicle.

I should talk to them so I can see if they want to attempt a reaffirmation, which would buy me time and/or give me a better deal on the car.

[whipster1]

I put surrender for my vehicle on the petition. I just got a call from them regarding my past due account (almost three months). What should I tell them? Should I say that I am filing and if they want to send a reaffirm (for less) to send it into the lawyer and I will look at it?

I *might* (big might) be willing to keep the vehicle and reaffirm at the book value, but most likely will not.

Any suggestions?

They shouldn't be calling you at all. They have violated the stay. They have to get an agreed order to pick up your car through the court, so you have a few weeks to use it but keep it insured.

[teacher]

They shouldn't be calling you at all. They have violated the stay. They have to get an agreed order to pick up your car through the court, so you have a few weeks to use it but keep it insured.

They aren't aware of the stay, or my filing for bankruptcy. The US mail notices just went out today, so they won't know for a day or two I suppose.

I realize the fast-track process of them filing for relief and getting the vehicle back. I am hoping to extend that as long as possible.

[Keebler]

I dealt with two credit unions and two vehicles and the prospect of having ZERO working vehicles in the household for a while.

I stopped paying one of them three months before I filed and the other I stopped a month or so before I filed.

I ended up using the one long enough after filing to save some cash and buy a cheap used car. (I used it up until a few weeks before I was discharged.) They never tried to come and get it and they never even tried to lift the stay. They did call me and ask if I intended to drop it off.

I used to leave the bankruptcy notice on the dash when it was parked in case they wanted to think twice about repossessing it without lifting the stay. It might not have helped much but it made me feel better imagining I'd get them in big trouble.

In was nerve wracking and hard to recommend to anyone, but it was worth it. I now have three modest vehicles with no loans and the peace of mind is worth it.

One of my vehicles had the transmission start slipping around the time I filed. I was willing to reaffirm it for the $4,500 or so that I owed but the credit union wouldn't let go of the Visa and the line of credit. They towed that one away and got $2,200 for it at auction.

The second vehicle was newer and I had bought it in a way where I wouldn't hardly owe more than what it was worth. (I bought a new vehicle for close to trade-in value.) Up until I stopped making payments the wholesale value tracked my loan amount pretty well. Several months passed after I stopped making payments and they eventually auctioned it and only got $12,000 against my $18,000 balance.

Now I drive used cars and sleep good at night because there's no payments.

[teacher]

Thank you very much. That's the kind of information I was looking for. If they want it back at the end of this month, I will be able to get a "meh" used car that I probably wouldn't feel comfortable traveling too far with.

The longer they take, the better of a car I will be able to purchase. I mean that in a "less than 5k" type of way.

We'll see what happens. I imagine it won't be a superquick process, so I should at least have until the beginning of July.

[Keebler]

We held out for the last second and pulled together enough cash to buy an $1,800 Oldsmoblow.

Look at how much "normal" people pay for interest every month on a car loan and realize how the interest is wasted money. Wasting some money is okay if it serves a purpose, but let it not be unreasonable.

For our mental health we use $100 per month or ten Cents per Mile as a reasonable waste of money to own each car. (Operating expenses are not included, just the cost to get it and keep it running.)

By that measure, we can THROW AWAY the car we bought in 18 Months or 18,000 Miles and not even feel like we wasted anything.

Without a mental tool like this it's hard to be objective. Nobody really LIKES to drive a car that's worse than they used to have.

But look...

Several years back we bought an SUV. By these standards the SUV needed to last 300 Months or 300,000 miles to justify the expense. NOT likely!

Now look at the $1,800 Oldsmopile. $1,800 means that 18,000 Miles or 18 Months we have gotten our use out of. We could sell it, scrap it, or do whatever we choose without guilt.

In the mean time we've saved up some cash to buy something we might like better.

Maintenance needs to come out of the $100 per Month or ten Cents per mile too. So, a new AC Compressor on the car we hate will cost $500. If we think it will extend its useful life by (only) 5 months or 5,000 miles the expense is justified.

Use this rule of thumb and new cars start looking very unreasonable and driving a questionable used car can actually start looking like a good way to save money.

We're less than a year post-discharge and we've now purchased a 1997 then a 2003 and finally a 2005 vehicle using the 100% down-payment plan. The 2005 only needs to last FOUR YEARS or 48,000 miles for it to be a justified expense and I'll bet it'll go twice that long!

[teacher]

You've really thought this through! Thanks for the advice. Honestly, I'm ready to give up my 2006 SUV for a used vehicle. Your math makes perfect sense.

[Frshstart09]

Keebler,

Did you have any problems with your I and J with surrendering both vehicles or was your situation negative enough not to raise any questions? The reason I'm asking is that I need those secured payments for my schedule J to show negative disposable income. I'd love to ditch the car and motorcycle and get two beater cars but I'm afraid they'll throw me into a 13. Which district are you in? Thanks in advance.

[chad9162]

Personally, I'd talked to your credit union. It can't hurt!. I mean they know you're in the driver's seat. Sometimes they just want to cut their losses and working it out with you is easier than repossession and selling at auction. I highly doubt the CU will file a relief of stay and repossess your vehicle. The fee to file is several hundred dollars and would add to their loss. Unless your car is above market value they'll probably just wait.

I'm behind on a few loans with my CU, one of them being a 2nd Mortgage. I spoke to them about reaffirming my vehicle. I spoke to the BK department and they said it'd be no problem. I am about a month behind. I didn't want to pay if they weren't going to reaffirm! Anyways, they forwarded my reaffirmation to my attorney so we'll see.

You never what they'll offer you unless you ASK! I'd called them. In your case they have no reason to be vindictive since you only have one loan with them.

Don't think that buying a sub $2K is going to be great. I had one of those and had car problems all the time. While Keebler has good points about maintenance costs you have to realize the bigger picture. If you don't fix the car because it doesn't fall within the "$100 a month plan", what are you going to do? Buy another sub $2K car and hope its not a lemon! This assumes that you even have another $2K. My point is that sometimes when you're trying to save money you end spending more in the long run.

We owe about $11K on our 2003 SUV. But its runs like and champ and we know its history. So by reaffirming we're just buying a decent reliable $11K car.

[CH33 Paralegal]

They won't reaffirm for less. The term "reaffirm" doesn't even allow for an amended amount. You are just "affirming again" that you owe the debt.

If you want the car, you'll have to work it out with the agreement you had with them. Cars are never assets that increase in value unless you know what will be rare in the future and you keep it cherry. My drivers ed teach told me that no matter what car I buy for whatever price, it's the worst investment I'll ever make.

It's true. It's a quickly depreciating asset. Most people are underwater on their cars at any point in time. That situation is not unique, nor the reason you had to file.

If you planned on surrendering, you should stick to that plan, because that's what you communicated to your attorney, or at least the court if you're pro se.