A couple of quick questions.

[wisconsin9er]

I am meeting with an attorney next week to talk about filing Chp. 7.

Here are my two questions. I will be giving up my car since I owe way more than it is worth but my question is at what point during the bankruptcy does the creditor take the car back?

My other question is say once the BK is final, I am going to need to get my own car. I have a good job and my mother has really good credit. Will it make a big difference if I have her co-sign for an auto loan even though I just went through Chp. 7?

Thanks.

[BobMango]

Once you file they are prohibited from taking the car without filing for relief of stay, or discharge. In my case I was surrendering a 5th wheel and called the lender to let then know. The didn't want to file for relief so they just waited for discharge.

Not sure about the effect of having you Mom co-sign, could make a difference but I have no experience with that.

[wisconsin9er]

Once you file they are prohibited from taking the car without filing for relief of stay, or discharge. In my case I was surrendering a 5th wheel and called the lender to let then know. The didn't want to file for relief so they just waited for discharge.

I'm sorry but could you clear this up for me? I'm not really sure what you mean by they didn't want to file for relief and waited for discharge? So when did you have to give up your vehicle?

[BobMango]

I'm sorry but could you clear this up for me? I'm not really sure what you mean by they didn't want to file for relief and waited for discharge? So when did you have to give up your vehicle?

No problem. When you file it creates what is called an automatic stay. The automatic stay is in effect from the time you file until your discharge. The stay prevents any creditors from continuing collection activity, including repossessing collateral such as a vehicle. They can get around this by petitioning the court for relief from the stay. This generally requires paying a fee of $150 or so. If you indicated that you plan to surrender the vehicle then relief is almost automatic. Once relief is granted they can take whatever legal actions are allowed to get their property.

In my case I indicated my intention to surrender the 5ht wheel. My creditor did not want to bother with filing for relief so I kept the vehicle until after my discharge was granted. Once my discharge came through I called them and they picked it up within the week.

[wisconsin9er]

ahhh... thanks for clearing that up for me.