QUESTION
Is there any benefit to holding onto the vehicle until after I file, making another payment and surrendering it in the bankruptcy?
Asked on Feb 11th, 2016 on Bankruptcy - Oregon
More details to this question:
I am 18 days behind on my car payment. I am filing Chapter 7 within a few weeks. I have no desire to keep the vehicle, but I do not want the embarrassment of it being taken out from in my driveway. I know that technically they can do that at any time and without warning since my payment is late. Is it all the same to just surrender it now?
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Unless you've got a high risk loan (a buy here-pay here or other loan with more than 15% interest), it's unusual to have a repo unless you're a couple of months behind. Once you file, they can't repo without jumping through some legal hoops which takes a month.
Answered on Mar 17th, 2016 at 4:51 AM
Consider taking it to the lender's office. Advise them you are filing BK. Direct them to your attorney with any questions.
Answered on Mar 15th, 2016 at 6:19 PM
It depends. Do you need the vehicle loan as a deduction on your Means Test? Why do you think that the repo man would take the vehicle from your driveway before you file bankruptcy? Typically the repo man won?t come out until the payment is at least 60 days delinquent, and the vehicle cannot be taken without court order once you file bankruptcy.
Answered on Mar 14th, 2016 at 10:49 AM
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It doesn't matter to your credit or the creditor if you surrender it now or after you file bankruptcy. If you surrender after bankruptcy however, you can use the monthly payment on your living expenses and means test if you need it to help you qualify for a chapter 7.
Answered on Mar 14th, 2016 at 10:44 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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So long as you don't have equity in the car, you can surrender it now. Any deficiency will be discharged in your bankruptcy. Good Luck.
Answered on Mar 14th, 2016 at 10:44 AM
Surrendering the vehicle now is the best strategy. There is no point in making another payment and it won't matter in your bankruptcy.
Answered on Mar 14th, 2016 at 10:43 AM