Letting the Car Go...

[justplaintired]

Well, I don't think they will be showing it on my credit report because they zeroed out the balance on my credit report and marked it as IIB a long time ago. So, it already looks like the car was written off.

I suppose I'll give them a car later on if we decide to do something. I gave CarMax a call and they said that they frequently see people post bankruptcy get a loan and some do it right after its discharged. I might look around and see what I like and maybe get another one in a month or 2. I can always get another one first, make sure everything is good with that and then just stop paying on the corolla. I can then call them up and see what they want me to do I guess. I always get so nervous about dealing with things you're not paying on.

Sounds like a good plan. Take your time, enjoy being debt free for awhile. Maybe even stop paying on the car and save the money for a nice down payment on another car or for the plates on the new/used car.

[bkmaggster]

I'm not advising this, but I read a thread on here somewhere where another poster took his in to the dealer to get the oil changed and just never went back to pick it up.

While this is funny, I would be very careful of doing this because a mechanic's lien could be placed on the car. Who wants to deal with more legal wrangling? Ugh.

[killinstinct]

Do you mind mentioning what insurance company you are with? I've been told that most check credit only when you initially sign up. Auto-renewals don't typically bother.

[Amy26]

I believe you are correct but I think they check a bankruptcy list or something like the credit card companies do. I even tried switching companies and got the same rate quotes...and even got an email from Geico saying the rate was quoted that way due to my credit.

I'm currently with Liberty Mutual. I even called them up and *****ed about it because I have been with them for like 10 years. But they said there was nothing they could do.

So, is the best thing to do with the car to stop paying on it... wait for them to call me and work out a pick up? Or should I call them first and ask if I can drop it off somewhere?

[Amy26]

Holy crap my credit score jumped to 598 in one day! Yesterday it was 530 and now that it shows I'm discharged and my mortgages were moved to IIB... its 598!!!

And another question on giving up the car... when do you cancel the insurance? If I go get another car, can I cancel the insurance on the one I'm giving up if I don't drive it? It would be parked in our covered garage and not used. And then just wait for them to come repo it?

[StartingOver08]

Amy, if you are going to surrender the car, just call the lender and make arrangements for pick up. You do not have to have the tow truck/repo man pick it up at your house. I made arrangements at a third party location (in fact, the dealer where I bought my replacement used vehicle). It was a clean easy way to turn in the vehicle because my lender was several states away. I took off the auto tag, cleaned out all the personal items and notified the lender. They actually called a third party towing company to pick up the vehicle.

[Amy26]

Thank you that's helpful!

[LuciluS]

Our Attorney will not reaffirm Dh's truck payment as we are minhus $1,026 with the truck payment of $437.98. So we didn't make the payment that was due on the 17th this month. Actually, this is the 1st month I didn't have the money to make it. He is filing our BK on 9/30/09

Now we have $411 of Personal Property Tax due by 10/11 & if you don't pay on time it's a 10% penalty. Dh's mom & 88 yr. old granny are flying in on 10/3 for a week's stay so grocery bill will be a lot higher too.

Don't know what we are going to do about another vehicle. We haven't paid our CC since late last Sept. & still couldn't save any money due to medical expenses. Dh's job is about 50 miles from our house. Sooo, we are doing lots of praying we can keep the truck for at least 2 months, if not longer.

[Amy26]

That stinks Luci... I hope you're able to pull through. Kinda makes my situation seem superflouous when I read things like that. I suppose I should consider myself very lucky and just make do.

Would I be able to refinance a dishcarged loan? If eventually my credit union or something was willing to send toyota a check for the balance and issue me a new loan with them... would that be permitted? Then at least I would have a valid loan on my car.

[shabam]

I believe you are correct but I think they check a bankruptcy list or something like the credit card companies do. I even tried switching companies and got the same rate quotes...and even got an email from Geico saying the rate was quoted that way due to my credit.

I'm currently with Liberty Mutual. I even called them up and *****ed about it because I have been with them for like 10 years. But they said there was nothing they could do.

Who knew that once you file and no longer have the stress or burden of debts, you are also no longer capable of driving competently.

And these are the types of companies that some want to run our health care.

[LuciluS]

That stinks Luci... I hope you're able to pull through. Kinda makes my situation seem superflouous when I read things like that. I suppose I should consider myself very lucky and just make do.

Would I be able to refinance a dishcarged loan? If eventually my credit union or something was willing to send toyota a check for the balance and issue me a new loan with them... would that be permitted? Then at least I would have a valid loan on my car.

Amy:

Having your Car Loan at a Credit Union and not reaffirming maybe a good thing. You are a Member at a Credit Union, just not a customer. As long as you continue to make your car payments on time, I don't think you have anything to worry about.

If your car loan was with a Bank or Finance Co., then I might be worried. I worked for a Credit Union and did not even attempt to repo a car until the Member was at least 3 mths. behind on their account. Of course, this was in 2004/2005. But still, I think you are okay.

If you have time, stop in at the Credit Union and have a chat with the Financial Officer or the CEO and tell them your concerns. I think they will tell you exactly what I posted here..No Worries.

[bkmaggster]

Amy, all you have to do is call them. then they will have a 3rd party tow person come and get it at a time and location that you choose.

Keep the car insured until it is in the hands of the 3rd party.

You *could* try to just drive it around without paying, but they will eventually catch up with you and take it, probably at a time that is inopportune for you - especially since they can't get it from your home. Who needs the headache?

[Amy26]

No Luci, I meant something else. My loan was with Toyota Finance. I recently got a membership at a credit union and was wondering if I could refinance the toyota discharged loan with a new company after awhile. I would think it would be just like refinancing a car normally... as long as Toyota gets their money?

[shabam]

No Luci, I meant something else. My loan was with Toyota Finance. I recently got a membership at a credit union and was wondering if I could refinance the toyota discharged loan with a new company after awhile. I would think it would be just like refinancing a car normally... as long as Toyota gets their money?

Yes that would not be an issue.

I also believe Toyota would send you the car title if it's paid off by the other bank or CU and not used as collateral.

[Amy26]

Hmmm maybe I will just do that then... I will keep the car and wait a few months for my score to go up and then refi it with the credit union... perhaps I can even lower the payment more! Unless of course the negative equity becomes an issue for me... grumble! ;)

I'm already amazed that my score jumped over 50 points in a day... lol.