Chronology of Car Repo with Ch7 ?

[MBeach222]

Sorry to drone on, but I am really trying to understand my options.

Does filing Ch7 prevent the lender from repo? I will offer to reaffirm the car loan, but they may not agree. Can they repo before the case is discharged? Is there a timeline someone can help with?

thanks

[drowning123]

They can't repo before during a bankruptcy. After discharge, they can come get the car. Repo will not show up on your credit report. They got my car a month after discharge. Repo time varies. I'd say it can range from one month to four months.

[MBeach222]

Thank you. My attorney estimates my filing is still two months away, so I am hoping to avoid repo before then. I am trying to negotiate more time with the Credit Union, and if not I may just park the car away from home until I file.

[drowning123]

I just remembered that someone posted here that they had a car repoed one day after discharge. Like I said, it varies. One day is very unusual, though. Hey, if you hide it, by all means.

[sh9730]

The lender CAN repo before discharge, but they must file a motion to lift the automatic stay that is in place once you file. It is common for lenders to do that though...this process can take about a month after you file....but then they can repo just like normal. Now, if you are current, why are you worried bout repo? If you are behind...you must GET current before discharge, even if you reaffirm. Otherwise, repo.

[MBeach222]

I got a call from a repo agent saying they were going to take the car. I called the Credit Union, and was able to negotiate with a Collections Supervisor that they would cancel the repo based on my continued payment and my promise to reaffirm the car loan. They even faxed me a letter stating they canceled the repo!

I agreed to pay a $250 fee that the repo agent charged them, and was happy to do it. They logged it onto my monthly statement as "Repo Cancelation Fee."

Bottom Line: If you are trying to stall repo until you file, try to work with a supervisor. The front-line collections people will just go by the book. A supervisor looks at the bigger picture.

Also, a lawyer advised me that I could just hide the car for a month or two until I filed, and then it would be protected by Stay. Just don't park it at my home or place of business. "I probably should not say this because I am an officer of the Court, but..."

Other Bottom Line: Avoid using credit unions for car loans, since they have the "cross collateralization" ability that banks do not have. Even if you pay your car loan, they can repo the car for any other of their loans that you reneg on.