Surrendering a car in a CH7

[anmartin31]

Hi I need some advice on our car situation. We are wanting to surrender our car in the CH7. We owe $40000 and the cars value is $26000, the payment is around $700 a month and we cannot afford it on one income. The problem is that we cant file CH7 for 90 days as our mortgage loan modification is going thru the trial period and I believe we cant file bankruptcy until the new loan agreement goes into effect on Oct 1st. If we stop paying in July, do we surrender the car to the lender or is it better to wait on them repossessing it. When they come after us for the difference between what the car sells for and what we owe, does anyone know the timeframe if they wanted to sue us. We will defintely be filing CH7 around Oct 2nd and I am worried that within the 90 days they will come after us for wage garnishment.

[aces67]

Have you talked to your bk lawyer yet? If you don't want your neighbors seeing then it's better to take the car to them. Most places will let you miss 1 or even 2 payments before starting the repo process.

Good Luck to you!

[OhioFiler]

I doubt the lender will come get the car right quick. Delay them via the phone when they start calling asking for late payments. Tell them you are on a temporary work absence but expect to be back on track as soon as September 15.

[poorold]

it is reasonable to assume that the repo order will not be sent until you are 90 days late.