Questions about surrender after discharge/not reaffirmed

[lookingforward]

If I bring my car back to the bank what is the usual process afterwards? Are they going to charge me for towing/storage fees? I did not reaffirm the vehicle and my bank has pretty much ignored the whole process, I haven't heard a word from them. I would like to surrender but I'm wondering what they can charge me with, any experience with this?

[flashoflight]

Keep the car insured and keep driving it. Don't put any valuables in the car because it might eventually get repo'ed. The repo man might come around many months from now to grab it. Or maybe not. Just don't hide the car. Used car values are very high right now so I'd think they want to grab it. You don't owe anything to them and won't owe anything to them.

[lookingforward]

Yes, I understand I won't owe anything to the bank, but if they involve a tow truck or a storage yard, it seems like that's a new charge by a separate party and that would be something I'd be responsible for.

[justbroke]

Yes, I understand I won't owe anything to the bank, but if they involve a tow truck or a storage yard, it seems like that's a new charge by a separate party and that would be something I'd be responsible for.

If this debt -- the vehicle -- is discharged in the bankruptcy, then the creditor can not seek to collect any money from you. You are no longer legally responsible to pay anything related to the contract. The contract is what would have given the creditor the right to charge you, but you're no longer personally responsible.

If the creditor does try to charge you even $1.00, then they would be in violation of the permanent discharge injunction (issued upon discharge). The creditor would face severe penalties for attempting to collect any part of the debt.

Most creditors wait until the case is actually closed before taking any action on surrendered property. They just don't want to violate the temporary stay.

[flashoflight]

The tow truck company doesn't bill you. The lender hires the tow truck company and gets paid by the lender. This is for both bankruptcy and non-bankruptcy. But in your case, the lender has to write off the tow/impound fees because you intend to surrender the car in bankruptcy even though the fee is incurred post-petition. That's why there is a chance that the lender will never try to repo the car. But they won't release the lien either.

[lookingforward]

Thanks. I am trying to sell the car to Carmax. They are offering me a few hundred dollars under what I owe. I'd rather sell it and pay them the few hundred and clear the debt than to deal with surrendering it. I don't really want to deal with this credit union that the car loan is with. They haven't been acting right about the bankruptcy since the beginning. It's like they are pretending it never happened. So I'm afraid they will try to pass any expenses incurred by them in storage/towing on to me. They are still reporting to credit bureaus like the bk never happened. I actually love my car and can afford the note but my husband paid cash for a truck so we don't need three vehicles. It makes financial sense to get rid of it. Cross your fingers for me that the carmax visit tomorrow goes like their online offer said.

[flashoflight]

I don't really want to deal with this credit union that the car loan is with. They haven't been acting right about the bankruptcy since the beginning. It's like they are pretending it never happened. id.

That's what they're supposed to do. Absolutely 100% normal behavior from a bank or credit union that you burned. They cannot do anything that seems like they are trying to collect on a discharged debt due to the automatic stay. This means no statements, no online access, verbal auto loan balance and account history only, no autopay, no discussion about your loan accounts without going thru the bankruptcy department, etc.

You cannot sell property of the bankruptcy estate or your lender (since you surrendered it) without court permission. Don't sell the car. Talk to your lawyer before you do anything. Just let them repo it.

[yourfired]

The tow truck company doesn't bill you. The lender hires the tow truck company and gets paid by the lender. This is for both bankruptcy and non-bankruptcy. But in your case, the lender has to write off the tow/impound fees because you intend to surrender the car in bankruptcy even though the fee is incurred post-petition. That's why there is a chance that the lender will never try to repo the car. But they won't release the lien either.

iv'e seen that happen a few times where the lender never repoed the car... but they won't release the lien either. id'e drive it till the wheels fall off at that point

[lookingforward]

OK, I saw this latest message from flashoflight a few days too late. I sold the car to CarMax. I owed 14820.00 and sold it for 14400.00. CarMax sent a check for 14820.00 to the credit union lender in my name and I paid CarMax 420.00.
When we filed bk, we stated our intent to reaffirm, but we never signed the reaffirm paperwork. Is this really so much different than paying it off ourselves? Or trading the car in? How much should I be worried about this. Just for reference, my chapter 7 case is discharged and also closed if that makes any difference.

[lookingforward]

That's what they're supposed to do. Absolutely 100% normal behavior from a bank or credit union that you burned. They cannot do anything that seems like they are trying to collect on a discharged debt due to the automatic stay. This means no statements, no online access, verbal auto loan balance and account history only, no autopay, no discussion about your loan accounts without going thru the bankruptcy department, etc.

You cannot sell property of the bankruptcy estate or your lender (since you surrendered it) without court permission. Don't sell the car. Talk to your lawyer before you do anything. Just let them repo it.

This credit bureau never stopped statements, online access, or autopay, I always had access to all of this.

[justbroke]

OK, I saw this latest message from flashoflight a few days too late. I sold the car to CarMax. I owed 14820.00 and sold it for 14400.00. CarMax sent a check for 14820.00 to the credit union lender in my name and I paid CarMax 420.00.

Pretty cool that CarMax was able to do this for you. Since the difference was only $420, that's a pretty good deal.

Just wondering, did you get a new car at CarMax or was this just a single transaction to sell the vehicle to them?

When we filed bk, we stated our intent to reaffirm, but we never signed the reaffirm paperwork. Is this really so much different than paying it off ourselves? Or trading the car in? How much should I be worried about this. Just for reference, my chapter 7 case is discharged and also closed if that makes any difference.

Being already discharged and closed makes a big difference. The vehicle was essentially yours subject to the lien by the credit union. You seemed to have cleared the lien by having CarMax payoff the entire loan (your trade in plus your $420 payment).

You are done with that vehicle.

[lookingforward]

It was a straight sale only. It was really a very easy process and a good experience that I would recommend.

[lookingforward]

I felt better selling it and clearing the debt than dumping it in the parking lot of the credit union. I couldn't make up my mind to reaffirm the debt or not, ended up stating my intention to reaffirm but never signed the paperwork. I figured the 420.00 was a small price to pay for continuing on with a clean slate and not having a repo/parking lot surrender to deal with.....a 288.00 loan payment was due next week anyway. I could afford the payment but by selling the car and driving my husband's car to work I will pay off my house 14 months sooner.