Surrendering a car

[tiffanydawnn]

If I plan to surrender my car during BK, when should I stop paying? Right before I file?

And at what point does the finance company retrieve the car? I'm trying to see how long I would be without a car.

TIA!!

[ccsjoe]

Usuallly lenders will go repo after the second or third missed payment, so if you want to be safe, stop paying when you're about a month and a half from filing.

[tod183]

That was my experience. I quit paying in June, filed in August, and surrendered the car in September.

[tiffanydawnn]

I'm thinking of trying to do a ride through. If that doesn't work, I think I might try to reaffirm the debt and then cancel before the 60 days are up. I need to keep the car as long as possible because I doubt if I'll be able to finance a car until after discharge. Would this strategy work?

[tcreegan]

Hi tiffanydawnn,

If you are going for the ride-through, stay current on payments and insurance even during the BK.

Financing a car after discharge is more a matter of interest rate than anything else. Since filing, I think I have been sent a letter from every car dealer in town offering to sell me a car....threw one out today, We Care, Rebuild your Credit, etc.

Whatever you decide on the car, I hope it works out for you!

Tom in Colo