Repo vs. Surrender?

[shortyg]

Does anyone know the difference as far as credit report/score if you have the car repoed and then filing bk vs. filing bk and surrendering the vehicle?

I have a suv that is in need of major repairs and cannot afford to fix it. I'm planning on filing but need some time to gather the funds. I'm just now late on my payment and I am not sure if I should keep trying to make the payments until I file or just stop and let them repo it.

Could someone please help.

Thank You.

[jayalln]

Well both the bankruptcy and the repo will show up on your credit report until the bankruptcy is discharge. When you receive a discharge it may show where the lender repossessed the vehicle but it will show the amount owed was discharged in your bankruptcy. After your bankruptcy discharge your credit score will likely increase a tiny bit don't count on it thou. If the car is surrendered in your bankruptcy it won't show as a repo or you surrendering the vehicle all it will show is where the amount was discharged in your bankruptcy filing this option will likely have less of an impact on your score from the onset but while you are in bankruptcy it isn't likely you are going to want to establish any new credit. So both are going to affect your score but emerging from bankruptcy is pretty easy especially from Chapter 7 you can improve your score within 12 to 18 months. I would avoid the repo to be honest.

[BCA2009]

Does anyone know the difference as far as credit report/score if you have the car repoed and then filing bk vs. filing bk and surrendering the vehicle?

I have a suv that is in need of major repairs and cannot afford to fix it. I'm planning on filing but need some time to gather the funds. I'm just now late on my payment and I am not sure if I should keep trying to make the payments until I file or just stop and let them repo it.

Could someone please help.

Thank You.

If you are going to give the vehicle up, do not make anymore payments, you are just throwing away money. If you have only missed one payment you are 60 to 90 days away from a repo in most cases. I would prefer to have it included in the BK rather than repo'd then BK. If it is repo'd or surrendered after you file, it will only show as a BK.