? about surrendering car

[StewieGriffin42]

I file chap 7, I was planning to reaffirm my auto loan, but I got a letter from the bank saying that since I apparently agreed that the car would be security for some other loans I have with them, that the only way I can keep the car is to reaffirm those debts as well as the car loan. of course in there little reaff agreement they sent they tacked on attorneys fees.

I sent them a polite letter basicaly telling them to KMA, if they won't let me just reaffirm the auto they can take the car.

I was wondering what kind of expenses they will incur by having to repo and sell the car? I doubt they will get the balance due if they auction it and I wanted to know a bit more about it?

[FlaMama]

I am in a similar situation. I planned on reaffirming my car. Bank did not get the papers to the court in time, I got discharged last week without reaffirming. I was just going to continue to pay and keep the vehicle, but this weekend DH and I talked and decided to get rid of the car.

So today I (dreadingly!!) call the bank. I simply asked them what happened now, since there is no reaffirmation, what are my options. (just wanted to see what they would say.) They guy said I can continue paying on the car and keep it or have it be a voluntary repo. I was like "WHOOOOAAAAA right there!!" NO REPO! He said, no, it would be IIB on my CR, not repo but that is what it is considered. He said to drop it off at the bank and give the keys to a bank officer. I said there will be no deficiency balance, right? He said no, because the whole balance was discharged in BK.

HTH! Sounds like you will be ok, they can't get you for the negative because you are BKing the entire balance.

[Minnymouth]

You can surrender the auto and owe nothing... thus discharging the auto debt and all the other debts attached too it....

They will be responsible for all their own attorney fees and aucton fees.

You will have no further obligation too them.....

Your credit report should say IIB Included in Bankruptcy.

[StewieGriffin42]

You can surrender the auto and owe nothing... thus discharging the auto debt and all the other debts attached too it....

They will be responsible for all their own attorney fees and aucton fees.

You will have no further obligation too them.....

Your credit report should say IIB Included in Bankruptcy.

I was wondering though, how much is it going to cost them to repo and auction the car? I want to know how bad they are screwing themselves by repoing the car and not letting me reaffirm just the car

[Minnymouth]

They have to auction the auto to get their money out of it and then they also lost the money you owed to them on the loan that you had......

They got screwed, believe me............. their loss....

[Jenny]

To know how much the bank will lose in this one contract, you'd have to calculate how much you've already paid them, including interest, and how much the car sells for. You sound really angry, but I'm sorry to point out the obvious. You're really not hurting the bank much. Unless they're going out of business because of this car, they'll be just fine. Banks don't just make money off car loans. The business of corporate finance is much more complex than consumer loans. Really, if you wanted to look at the big picture, you're probably hurting other consumers more than you're hurting the bank. The more people who default on loans, the higher interest rates they'll charge for other loans especially high risk ones.

[Broke in TX]

New Cars after BK - DON'T PANIC

We filed BK 7 under old laws - we were discharged & case closed in January of 2006. We had two car loans that we were paying $1100 on two 1999 cars that we were $7,000 upside down on one and $8,000 on another. Both cars had over 100,000 miles. We didn't reaffirm with either bank.

We let the first car go in late January after we stopped paying and voluntarily gave it back.

In early Feb I went to a dealership that finances their own deals - not a buy here pay here lot but "Drive Time" and "Driver's Select" our FICO scores were in the upper 400's.

In Early March we went back to "Driver's Select" and they told me that our FICO's had jumped over 100 points since early February. We almost bought there, but having heard our FICO scores jumped,we went to a KIA lot to look at new cars. They couldn't get us approved for a new KIA but we were able to qualify for TWO late model used cars. We landed up plunking down $1500 on a 2005 Taurus with only 12,000 miles and put down $1,000 on a 2005 Dodge Minivan with 32,000 miles. Both are in GREAT condition and the dealer even repaired some body dents on the Taurus PLUS installed a flip down DVD player in the Minivan! Our total payments now are $760 per month but we have two 2005 cars with relatively low miles. Rates are 16% but it could have been a LOT worse.

We just got a call today from the lender on our other car. (Voice mail - I hope they are not trying to collect a debt!). We're going to turn this one in.

The moral to the story is hang in there - DON"T jump at the first dealer that offers you BUY HERE PAY HERE type financing and things will work out fine.