Vehicle Question

[youngbroke]

Okay...We have an old car that we said we would surrender back to CitiFinancial as part as the secured loan that was taken out. I think they called one of the paralegals today to see when we would surrender it back to them. Do we just take it the local office and leave it?

[StartingOver08]

Call them and make arrangements for drop off of the vehicle or for them to send someone to you to pick up the vehicle. Whatever makes you most comfortable.

[youngbroke]

I think the dropping off will make me feel more comfortable. I will call and make arrangements.

[youngbroke]

Okay. I just called and as I was making arrangements; he asked if I would be willing to purchase my vehicle back(since title is in their hands) for $2,000. It's valued at about $2350.00. The loan balance from the loan(which we received money, and put car for collateral because it was an older car..) is roughly $16,000. Is this even a legal transaction being that i filed bankruptcy on the 2nd and we put down that we would surrender the car back??
Do you guys think I should just let them have it?? We have other vehicles in place...

[justbroke]

Okay. I just called and as I was making arrangements; he asked if I would be willing to purchase my vehicle back(since title is in their hands) for $2,000. It's valued at about $2350.00. The loan balance from the loan(which we received money, and put car for collateral because it was an older car..) is roughly $16,000. Is this even a legal transaction being that i filed bankruptcy on the 2nd and we put down that we would surrender the car back??

Yes, this is called a Redemption. This may be the first that I heard the creditor initiating one!

If they want to do that, you need to file a Motion to Redeem (sample form from Indiana). Do not just hand them $2K. You want to make sure it's all above board. You may also want to negotiate the price down to $1,500 - $1,800 just to see their "appetite". They are about to get a car for which they are "stuck" with that they will probably get less than $1,500 for at auction.

If you really don't care about the car, then let it go.

[youngbroke]

Thanks everyone....I'm awaiting response from my lawyer and I did tell them that if we could get it closer to $1600, we would think about it. I just don't want anything to stop me from being able to discharge the rest or stopping my bankruptcy because of it; because I will just give it back if it is going to cause any issues....
Thanks, you guys and gals are the best.....