QUESTION
What can be done if I want to give the car back but my attorney told me that I have to file a chapter 7 now?
Asked on Dec 14th, 2016 on Bankruptcy - Oregon
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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It's always your choice whether to file a bankruptcy. In a Chapter 7 any liability you have for a car you give back would be eliminated.
Answered on Feb 10th, 2017 at 5:37 AM
In either a Chapter 7 or Chapter 13, you have the option to return a vehicle to the lender if you wish to. There may be repercussions to doing this depending on facts you have not explained, but I do not know why you believe you cannot do so. The lender will NOT be able to pick up the vehicle until the court gives permission for them to do so.
Answered on Feb 09th, 2017 at 12:35 PM
You can probably file an amended Chapter 13 plan that designates you intend to surrender the vehicle.
Answered on Feb 09th, 2017 at 12:35 PM
I'm guessing the lawyer told you to convert to a chapter 7, which, of course, is an option. Sounds like you might want a second opinion. Pay an attorney for one hour of their time so they can discuss your legal matter with you. Good luck!
Answered on Feb 09th, 2017 at 12:34 PM
1 Award
That sounds right. If you elected to keep a car in a chapter 13 and you now want to give it back it is likely you will have to switch the case to a chapter 7 in order to not have to pay the deficiency after the lender auctions off the car.
Answered on Feb 09th, 2017 at 12:26 PM