Motion for Relief from Stay question

[BananaCabana]

We finally filed on Feb 9th. I waited until after the 14 day mark to allow myself to sign-up for pacer. I just checked it and the only new thing listed, so far, is a motion for relief of stay from the vehicle's financial lender.

When we filed we listed that we would be surrendering the vehicle. The 341 is only 20 days from the date of the filed motion which was when we figured we would be told 'how and when' to surrender the vehicle. The motion gives 21 days for objections which is the day after the 341. So WHY would a company pay the filing fee to file a relief, especially within that time frame, when they know we are surrendering the vehicle within that same time frame anyway?

What am I missing in this logic? The attorney had told me to plan to drive the vehicle until the 341. Will this motion allow them to take it earlier? I am okay with that as long as I know when they are coming to get it. I would just like to understand the reason for what they may be doing and what my own timeframe is now for driving the vehilce.

Thanks for your opinions and knowledge!

[AngelinaCatHub]

Well your lawyer is correct. Your 341 is 20 days, and 21 days to object. They cannot pick up your car before the 21st day, and depending on the Judge getting the paperwork, even longer probably. Check PACER for a notice that the relief has been granted, then call the mortgage company to make arrangements for turn over. My creditor for the car I cosigned for was very nice as I told them I would drive it in. She said no prob that they would send a roll back. I got a paper marked surrendered not repossessed. Take pictures of the inside clean, the body as it is. Have the roll back guy sign a receipt that he took it. 'Hub

[BananaCabana]

Thanks, and good advice. Although with all our children and animals the only day that vehicle was EVER clean was on the day we bought it. And it has been falling apart from day one which is another reason we are surrendering it.

Oh well, we will try to vacuum the inside and take some dated pictures as you suggested. I will also try to write down a list of all that is wrong with it. Doors not sliding, windshiled wipes working only when it wants to, engine light on at all times, etc.

[AngelinaCatHub]

Thanks, and good advice. Although with all our children and animals the only day that vehicle was EVER clean was on the day we bought it. And it has been falling apart from day one which is another reason we are surrendering it.

Oh well, we will try to vacuum the inside and take some dated pictures as you suggested. I will also try to write down a list of all that is wrong with it. Doors not sliding, windshiled wipes working only when it wants to, engine light on at all times, etc.

Sounds to me like getting rid of that heap is the first action of your "new start". I'll bet you will feel GOOD when you see that rollback leaving down the road. 'Hub

[BananaCabana]

Yes, it kind of reminds me of your Titanic picture. BUT it does get me to work everyday.....so far. When it is gone I will be driving a 20 year old car until I can get something better. That scares me almost as much as keeping the 5 year old vehicle and trying to pay it off, hoping it doesn't breakdown in the meantime.

I will feel better when I can afford a reliable, decent vehicle. Someday....

[AngelinaCatHub]

Yes, it kind of reminds me of your Titanic picture. BUT it does get me to work everyday.....so far. When it is gone I will be driving a 20 year old car until I can get something better. That scares me almost as much as keeping the 5 year old vehicle and trying to pay it off, hoping it doesn't breakdown in the meantime.

I will feel better when I can afford a reliable, decent vehicle. Someday....

There is one consolation. A 20 year car has proved it's reliability just by it's being here. Also, if it blew up on the road, you could park it and walk away without owing anything. Also junking if it blew up, could get you 3 or 4 hundred for a portion of a good used car. I doubt the trustee would not approve a purchase in this regards since you have to have wheels. 'Hub

[SMinGA2]

Even though you said you're surrendering it, the automatic stay (generally) means they can't touch it until discharge. Unless they file a motion for relief of the stay, which is what it seems they have done. Since they know you intend to surrender it, they probably just don't want to wait that long.

The car's condition should not matter, any deficiency balance will be discharged. The only issue potentially is if you dropped insurance & had an accident before the lender gets it back, or if you intentionally did damage. (And then it might still be hard for the lender to do anything about.) Having proof that you returned it is not a bad idea, though. You may need that when you cancel insurance & registration.

Of course - dropping insurance could give you issues w/ your county even without an accident. I know that where I am, insurance is mandatory & results in a fine if you don't keep coverage.

True story: I surrendered a car when we filed ch. 7 in 2005. The lender took the necessary steps & picked it up prior to discharge. A few months later (don't remember the exact time frame) I got a notice in the mail about it being impounded how I could pay a fine and storage fees to pick it up. I called and notified them that the lien holder had picked it up months earlier, and it was no longer my car. That was the last I heard of it. (Apparently it had been abandoned on the side of the highway and impounded - I guess the last registration in GA was me?)

[BananaCabana]

Even though you said you're surrendering it, the automatic stay (generally) means they can't touch it until discharge. Unless they file a motion for relief of the stay, which is what it seems they have done. Since they know you intend to surrender it, they probably just don't want to wait that long.

The car's condition should not matter, any deficiency balance will be discharged. The only issue potentially is if you dropped insurance & had an accident before the lender gets it back, or if you intentionally did damage. (And then it might still be hard for the lender to do anything about.) Having proof that you returned it is not a bad idea, though. You may need that when you cancel insurance & registration.

Of course - dropping insurance could give you issues w/ your county even without an accident. I know that where I am, insurance is mandatory & results in a fine if you don't keep coverage.

True story: I surrendered a car when we filed ch. 7 in 2005. The lender took the necessary steps & picked it up prior to discharge. A few months later (don't remember the exact time frame) I got a notice in the mail about it being impounded how I could pay a fine and storage fees to pick it up. I called and notified them that the lien holder had picked it up months earlier, and it was no longer my car. That was the last I heard of it. (Apparently it had been abandoned on the side of the highway and impounded - I guess the last registration in GA was me?)

NOW I get it! Since it could potentially take months before they discharge us they don't want us using the car for free for that long. Now THAT makes more sense to me. LOL! I was just under the assumption that we would be turning the vehicle over as soon as our 341 was done. I didn't realize that without the relief of stay we may have had the chance to drive it until we were officially discharged. Well, if they don't disclose all the problems the vehicle has they may be able to get a couple thousand for it at an auction.

[BananaCabana]

There is one consolation. A 20 year car has proved it's reliability just by it's being here. Also, if it blew up on the road, you could park it and walk away without owing anything. Also junking if it blew up, could get you 3 or 4 hundred for a portion of a good used car. I doubt the trustee would not approve a purchase in this regards since you have to have wheels. 'Hub

Good point. I will seriously consider becoming a AAA member soon though. Thank you for trying to make me feel better. It worked. ;)