Car Surrender Process

[spanky]

We just filed out Chapter 7 paperwork, pro se. How long should I expect the surrender of our car to the creditor to take? How's this process work?

[justbroke]

No one can answer the question, of how long, because each case is unique. If you were paying on time, up to the time you filed, it may take longer. In other cases, where Credit Unions are involved, it may be quick. Just no telling.

Process: the creditor -- car lender -- will receive notice of your Bankruptcy. They may immediately, or really slowly, submit a motion with the court so that they can repossess the car. This is known as a motion for relief from stay (MRFS). Until that motion is approved by the court... you keep possession of the car, unless you surrender it voluntarily. Even with surrendering voluntarily, they may not accept it, and it would still be technically yours until the lender actually follows the procedure.

[spanky]

I see. Well, that helps. It sounds like it's a least a few weeks for paperwork, etc. Is there any benefit to returning the car early?

[LSUTiger32]

I had Toyota Motor Credit and we were able to drive the car for nearly three months after we filed. They mailed several things trying to get us to work a deal with them to keep it and then someone finally just showed up to get it. Extremely nice man, I gave him the keys and thanked him. Had to be the easiest pick up he ever made.

I would drive it until they come get it. I did.