Question about repo 7 months before filing?

[momofmany]

Ok, my question is, does anyone have any clue on an answer for me? Currently owe about $43,000 on a vehicle worth maybe $20,000(we were upside down before we traded in for this one). Payments of $695/month are killing us. Just finally got July's payment in the mail....won't be able to pay August payment until probably sometime in Sept. We should be eligible to file Ch 7 in April of next year(reason we can't file before them is stupidly we screwed up the second chance we had with a bk in 2000).

My question is, if we decided to stop paying the truck right now, and let them repo it. I assume they would go sell it and get a small amount and we would them owe the rest. I beliee that difference can be discharged in the bk, but say for instance this happened in Sept. what would they do in the mean time? I know with credit cards they can try to garnish your wages and/or bank account...if the vehicle loan co. tried to garnish wages, would they just keep garnishing until the $ was paid off(or until we filed)??

Just trying to figure things out. Sure would be nice to have the $$ to buy groceries and such instead. Not sure what we're going to do, but wanted to know the details of what could happen between now and filing if we did let the vehicle go.

In case it matters, we're in Minnesota. WE would be below median income filers, and basically have no assets for them to get(owe on house about what it's worth if we're lucky).

Thanks, Sara

[jennyn]

I had a car repo'd in April and I have gotten one letter from the lender and one from a collection agency, telling me to pay, no real threats yet. I'm working on filing soon. An odd thing I don't get is the amounts are different. The CA is less???

[nutshell143]

One of our cars were repod in 11/06 we just did have our 341 yesterday and we filed in 7/07 we only got one or two letters from HSBC and then one from a collection agency for the difference in what it auctioned for and what we owed. We let the CA & HSBC know that we planned on filing chap 7 but until you actually file they can still call you. It does take awhile for them to be able to attach wages and bank accounts and so on. There is a process that they have to legally follow. So you probably will be ok but they will more than likely will hound you with phone calls until you have that file date with a case number!

I am soooooooooooo glad to be through that part now

[monlyba]

i had a car repo'ed 8-10 mths ago (i think it was 12/06?) and i just get the occasional letter about it. i still owe about $6k even after they sold it at auction. i haven't paid on my credit cards in about 5 YEARS so i'm not too worried about it right now! ;) i hope to file bk7 in the next 2-3 mths.