Does it matter if I surrender a vehicle before or after filing 7?

[PVS]

I am filing 7 soon and I'm 2 months down on a car I'm not going to keep, in fact haven't driven in months. I wanted to file before surrendering the car, however my attorney's paralegal told me that it doesn't matter? She said I'll have a repo AND a debt included in BK on my credit whether I surrender before OR after filing.
I assumed it would be better to file before surrender so that no repo would be on my credit. Any advice?

[AngelinaCatHub]

Quick and dirty. It does not matter. No pay, no car. LOL. In all due respect, you aren't going to pay through so really it is a situation that is behind you. 'Hub

[PVS]

Thanks for the reply. You are saying that either way I'll be without the car, I understand.
However, I'm looking down the road to rebuilding my credit and seeing a repo and a bk on a credit report is worse than a BK alone.
Simply put, is the debt reported as a repo if it is included in BK filing before the surrender?

[BKInLA]

This is a good question. I'm in the same situation except I'm not behind yet. I am planning to let go of 1 car but need to know when I can safely stop paying it.

[BKInLA]

How does a BK show up on your report anyway. Does it show each of the discharged accounts as being cleared in BK or is there an actual BK line item that shows up? Good questions...

[aces67]

It's going to show as included in BK if you include it in your Bk. We surrendered a car before we even filed and that's how it shows up.

[PVS]

Having been on the reviewing side of credit reports for many years, I know that a BK shows up under derogatory credit section of report, as well as under each creditor discharged- 'account included in bankruptcy'. At least they should show that way, often this info is not reported to the bureaus correctly and some accounts don't show that they were included.

[PVS]

It's going to show as included in BK if you include it in your Bk. We surrendered a car before we even filed and that's how it shows up.

Thanks!

[StartingOver08]

Yes, it will show up as two items if you surrender before you file and show up only as iib (included in BK) if you file before you surrender. IMHO it is better to have only the BK derog than both a BK and a repo - but to each his own.

If you have items on a report that are not reporting correctly then it is up to you to have the CRA's and DF's report the items correctly. You do this through the normal dispute process, but once you have been disharged in BK, they seem to respond more quickly to correct disputes. At least that is my experience.

[aces67]

We surrendered one before we filed. Before we filed it showed up as a repo. After filing it was updated to IIB.

[PVS]

Yes, it will show up as two items if you surrender before you file and show up only as iib (included in BK) if you file before you surrender.

That's what I figured.... but...

We surrendered one before we filed. Before we filed it showed up as a repo. After filing it was updated to IIB.

This is better news. This is a murky business, this BK stuff. Thanks for your input.

[StartingOver08]

We surrendered one before we filed. Before we filed it showed up as a repo. After filing it was updated to IIB.

That is good news! Do you mind saying what the time frame was between surrendering and filing? For example was there a month difference? 6 mths?

[albacore44]

one thing to remember is if you need that payment to qualify for a Ch-7 you better pay it or the UST could move to dis-allow the expense, and try to convert you to a ch-13. i'm in that situation, gonna cost me a couple extra payments,but at least I'll get the Ch-7

[aces67]

That is good news! Do you mind saying what the time frame was between surrendering and filing? For example was there a month difference? 6 mths?

It was approximately 3 1/2 months. The car had already been auctioned off and the deficiency and repo was already on our CR and then we filed. After filing it was updated to a IIB account.

[liboton21]

Normally my payment is due on the 24th of each month but I got negative on my checking so I will pay on the 29th, will the bank (NFCU) repo my car? I filed C7 1/4/10 and not behind on the car payment.