Surrendering a vehicle

[nervousinohio]

I know this sounds very stupid but this has all been a learning experience for my husband and I. . .
In June, we traded in a small vehicle(not paid off and had to take a hit) to purchase a van (big MISTAKE). I don't really know what we were thinking. . .we couldn't afford it. It was a $410/mo. payment. Anyhow, we filed on 8/12 after meeting with our attorney in July (before the first payment was due on the van). We were going to try and keep the van but after looking over the budget decided that we couldn't really afford it. So needless to say, we decided to surrender it. We didn't make any payments on the van at all. The credit union knows that we filed bk and we haven't heard anything from them. We already had the 341 and they didn't show up. Do they have to show up to object? If they object what can happen?
I would really appreciate any info. . .I can't sleep and have lost 8 lbs in the last couple days. I am so stressed

[quest42]

Seems it would depend on your credit union's policy. They have title to the van, yes? And it is secured by a lien. They may give you a month or two to make good on your payments... maybe?

My own simple understanding is if you have no equity in the vehicle, and you do not reaffirm or exempt or redeem, you can just keep making the payments and any late fees... and they will not bother to repo the vehicle... probably better to keep you as a customer, and cheaper than to repo?

What did you put on your Statement of Intention?

According to NOLO, Chapter 7 book, page 7/14... Ohio has two districts, Northern says you can keep without reaffirming, Southern says you need to reaffirm...

IANAL .. just some ideas to share!

[nervousinohio]

Thanks for replying.
We decided not to keep the van. . .we don't want the payment. So, we did put it on the petition as surrendering the van. I am just wondering if it takes longer for credit unions to handle bankruptcy than bigger banks (that's what I've heard). I just find it odd that we have not heard anything.
We also surrendered our other vehicle that we had for 3 1/2 years because of the high payment. It was through a larger bank and they already went to court for relief from stay and abandonment and already have the vehicle.
We have been borrowing a car from our parents until we can find something to BUY out right (which will be tough because we have to save up money).
Ugh. . I just feel so awful.
I tried to look on PACER today to see if there were any flags but I really have no idea what to look for.
Okay, I guess what I was trying to ask before is, what can happen if the credit union disputes our discharge on the van? What happens then? Do we have to pay for the missed payments and keep the loan and $400/mo payment? I have no clue how this would work!
It seems like our lawyer would have advised us to keep the van if he thought it was in our best interest. I hope that we will be okay as my husband seems to think. I sure have FAITH in the Lord and know that he will get us through this very rough time.
I love these boards because I have had so many questions and I hate pestering my lawyer ALL the time. It seems like we were calling at least once a day for a questions before I found this forum.
Thanks to everyone who answered my questions (both direct and non-direct).
Happy Halloween!

[AAAArt]

I think that you are like many of us and are asking "What is the worst case scenario?" IMHO, the worst that can happen is that the Cr. Union object that you knew you were planning on filing BK when you bought the van and have not made any payts. on it and therefore it is fraud. What would they do then? If you tell them that you can not afford the payts. and do not want to keep the van..."The worst case" is that they would sell it for what they could get out of it and you would owe the difference and they would work out some kind of a payment plan over a period of time for you. That, I my limited opinion only, is the absolute worst that I can envision happening.
Much more likely is that they will just at some point also file for a relief of stay and repo the van.
Your only problem is not that it is a credit union, but the proximity within which you purchased it and then filed. However, even those of us who are filing because of some catastrophic event completely out of our control, have done "stupid" things. Quit kicking yourself. Actually, your mental worrying and berating of yourself is far worse than anything that they will say or do.
Since you claim that you have faith, every time you start worrying about this, simply try this little prayer..."God, I am worrying about xxxx again and I know that there is nothing I can do about it. Once again, I turn it over to you. Grant me the wisdom to learn whatever lessons which you are now trying to teach me. Give me the strength and power to get through today and to help someone else with what I am learning and going through. Grant me your strength and peace so that rather than worrying about something over which I have no control, that I may spend my life and this day doing the mission which you have for me. Thank you for your presence and love in my life."
You might want to follow this up with either The Lord's Prayer and/or the
23rd Psalm.
I am not our to convert anyone or to push religious beliefs on anyone, I only offer this advice because you mentioned your faith.
Also, I needed to put it into writing so that I would have a plan to follow, because my normal thinking is much like yours. I am going to try it myself for one week and if you want to also, we can chack back with each other next Sunday and see how it worked.
P.S. Anyone else who is wanting to try this experiment is welcome to join. We can PM, so that no one feels that a bunch of religious kooks are hi-jacking the board. You and everyone on this forum are in my prayers. Art