Car broke down, got permission for a new car loan to get a new car...

[mrdav]

Car was included in my 2012 Chpt 13 BK. Have been making payments since then. Found out a few months ago that one of the valves has gone bad and even the most friendly, economical repair estimate costs more than the car is worth. Worked with my lawyer to get permission to incur new debt from the BK judge. Cosigned a new loan with a parent to get another car loan. Now I must surrender the old car to the lienholder. Lawyer says that monies still owed on the car will revert to the unsecured column.

Here's the thing that bothers me: I worry that I am going to have trouble giving the car back to the lienholder now that it's no longer running. What do I need to watch out for? Lienholder is Santander and before I filed Chpt 13 I was never late paying them. It doesn't feel right, but I can't afford to fix it and I have to have a car to get to my job. Can they sue me?

[despritfreya]

You should not have any problems. Your Plan will be modified to surrender the vehicle and the lender will file a Motion for Relief From the Stay. Either before or after the Motion is granted (doesn't really matter as far as you are concerned) your attny can call the lender to find out where it should be delivered if drivable or make arrangements for its repo. Talk to your attny.

Des.

[mrdav]

thank you. attny told me to call and let lienholder know that I want to surrender the car and to follow their instructions. I'll call in the morning.