Discharged 2010, how do we arrange voluntary repossession? What to say?

[welostit]

Hello, we have a truck with a ton of miles on it that we did not reaffirm. We've been paying on it with no statements, and we want to give back the car (it is Nissan thru NMAC). Still owe $7K. Shows as "Incl in bankruptcy" on our credit. No sign of payments made for over 1 year.

This is probably a stupid question, how do we tell them we're giving it up? Do we just call and say come get it? Can we drop it off somewhere so we don't have people at our house? Anyone have experience with Nissan? Our next payment is due June 7 and we would like to arrange this now before payment is due.

I feel naive, but for some reason I think they're going to be mean or something! We haven't talked to our attorney in 2 years and not sure if he'd even offer us help without more $. Our case was discharged end of 2010.

[ValleYum]

Call them. Say something like: Gosh, I am so sorry but our finances have changed in this darn economy and I will need to bring the truck that was discharged during our 2010 bankruptcy back to you as I can't afford it any more. I live in _____; where should I drop the vehicle/keys off - maybe a local Nissan dealer?

I would make sure to get something signed by the person you give the keys to - a simple receipt with the VIN #, date you returned it, etc. should suffice.

Good luck. I bet it will be easier than you think.

PS: Double check everywhere to make sure you left nothing personal in the truck and take your plates if you are supposed to turn them over in your state.

[HHM]

Just to clarify, was this a purchase or lease.

If purchase, no issue. Heck, you can even take it to the dealer and just leave it on the lot (although I don't really recommend that...call the bank).

If a lease, then you have other issues. Reaffirmations do not apply to leases and you may still be on the hook.

[AngelinaCat]

VY gave the same advice I would, as we had the car that 'Hub co-signed for an acquaintance, picked up. Said Acquaintance defaulted and wasn't making the payments, and we were being sued, so we made him surrender it. We arranged pick-up with the lender, and also photographed inside and out and had the roll-back driver sign a receipt for it.

[bcohen]

...If a lease, then you have other issues. Reaffirmations do not apply to leases and you may still be on the hook.

Can you clarify this? It is my understanding that leases are either assumed or rejected in bankruptcy, and unless the lessee (the debtor) explicitly assumes the lease, it is deemed rejected. There is no "accidental reaffirmation", so by that same logic, keeping the leased property and continuing to pay does not magically make the lease "assumed". So if the lessee wished to surrender the property at some future date, it would appear that they could NOT be billed for rent which has not yet accrued, or wear and tear/excess mileage/early termination fees, since the contract which provided for these fees was rejected in bankruptcy.

[despritfreya]

bcohen is correct. No assumption - no liability. See 365(p)(2)

Des.

[welostit]

Call them. Say something like: Gosh, I am so sorry but our finances have changed in this darn economy and I will need to bring the truck that was discharged during our 2010 bankruptcy back to you as I can't afford it any more. I live in _____; where should I drop the vehicle/keys off - maybe a local Nissan dealer?
I would make sure to get something signed by the person you give the keys to - a simple receipt with the VIN #, date you returned it, etc. should suffice.
Good luck. I bet it will be easier than you think.
PS: Double check everywhere to make sure you left nothing personal in the truck and take your plates if you are supposed to turn them over in your state.

Thanks for the simple answer. I don't know why I'm stressing on this, it is not a lease, it is payments towards purchase.

How would I find out if my state requires that I keep the plates?

I also read in a blog somewhere that I could get paperwork from the DMV and have it signed but I can't remember. Something to release our liability in case it gets damaged after we give it back. Wish I could remember what that was.

Thanks!

[LadyInTheRed]

You don't have to keep the plates in California. When the car is no longer in your possession, you file a Notice of Transfer and Release of Liability: http://dmv.ca.gov/online/nrl/welcome.htm It doesn't protect you from liability to the lender for damage to the car. Your discharge takes care of that. The Notice protects you from liability to others resulting from the operation of the vehicle after it is repossessed.

[welostit]

Thanks Ladyinthered!

[Bell30656]

Personally I'm of a different school of thought. Drive the crap out of the car, leave nothing in it when you park it and keep very minimal gasoline in it. Don't bother paying, sooner or later it will disappear during the night. Or not. I've got a huge conversion van taking up space in my driveway that hasn't had a payment made in three plus years. The called me about it a couple times a few years ago, but they haven't expressed enough interest to come get it. I still drive it sometimes when I need to haul a giggle of 9-year-old girls to a movie or bowling. (A giggle is like a gaggle of geese but applying to little girls.)

[DWA134]

If you have any equity in the vehicle here's a thought- we had similar experience with Wells Fargo. Car was not reaffirmed in BK and they stopped sending payment stubs. I inquired about a voluntary surrender but they said they don't do that.

Fast forward to this year and I am between jobs, can't make the payments. Wells Fargo wouldn't let me skip a payment so we didn't pay since May. I had it appraised at Carmax so I knew if I was negative or positive in equity. I kept it in the garage with the door closed when I was home.

Last Thursday at dusk I saw an unmarked tow truck go around the block- it was time! I said the car would be back tomorrow and the driver left me a number to call. We took it down to Carmax that night, parked it overnight. I came back and sold it the next morning.

If you have any equity in it give this a try! The bank doesn't want another car- just their money.

[Tater]

We are in an active bankruptcy, waiting our discharge in about two months. We have a twelve year old car that has a lien on it through Citifinancial or now One Main. Since we chose not to redeem or reaffirm the car, our attorney told us at our 341 meeting to call the local branch to have them come get it. I did so the following day and they transferred our account to the bk center. The branch didn't want the car and refused to have us drop it off. After speaking with the bk center, they won't come pick it up because it's not worth at least $2,500 and they refused for us to surrender it.

I'm not sure if things will change once we are discharged. The thing doesn't run. We spoke to the paralegal about it and she said to hang tight until we are discharged. No problem! She said for us to call again once we get our discharge papers. If they state the same thing, the lawyer's office will either call or shoot them a letter. Who knows? They were trying to get me to do a settlement so they would release the lien and send us the title. Maybe I'll offer them $1 when we our discharged. The lawyer charges $300 in additional fees to do a redemption. The car's not worth it!

[pinkpeanut01]

WRong thread

[pinkpeanut01]

We are in an active bankruptcy, waiting our discharge in about two months. We have a twelve year old car that has a lien on it through Citifinancial or now One Main. Since we chose not to redeem or reaffirm the car, our attorney told us at our 341 meeting to call the local branch to have them come get it. I did so the following day and they transferred our account to the bk center. The branch didn't want the car and refused to have us drop it off. After speaking with the bk center, they won't come pick it up because it's not worth at least $2,500 and they refused for us to surrender it.

I'm not sure if things will change once we are discharged. The thing doesn't run. We spoke to the paralegal about it and she said to hang tight until we are discharged. No problem! She said for us to call again once we get our discharge papers. If they state the same thing, the lawyer's office will either call or shoot them a letter. Who knows? They were trying to get me to do a settlement so they would release the lien and send us the title. Maybe I'll offer them $1 when we our discharged. The lawyer charges $300 in additional fees to do a redemption. The car's not worth it!

Our car doesn't run either. We owe $1200 on it but because it is through a credit union, it was cross-collateralized with a $9000 credit card so they won't give us the title without $10K. My husband and I filed separately, and his credit report showed they charged it off before he even filed so they never had any intentions of getting it or their money. I do hope you have a better outcome than me, but when they say they don't want it, they mean it. What a pain. And nobody will take it without a title. I'm thinking of just renting a U-Haul trailer and towing it to their closet branch, leaving it there, and calling them the next day to tell them I returned their car.

Now we did surrender a car to Santander. After his discharge, my husband called them and told them they could come take it, and they did just that within a week. This car has been sitting for a year and a half already. And I hate to put any money into fixing it in case it needs a lot of work.

Keep us posted on what happens with your case! Thanks for sharing.