QUESTION
What happens if you file chapter 13 bankruptcy but surrender your vehicle to the creditor?
Asked on Jun 25th, 2013 on Bankruptcy - Colorado
More details to this question:
I am refiling a chapter 13 case and this time I would like to surrender my vehicle so that I am not paying double for the car. Is that an option?
8 ANSWERS
Richard hirsh
If you surrender your vehicle the lender will sell it and any deficiency would be an unsecured debt in your bankruptcy case.
Answered on Jun 27th, 2013 at 5:04 PM
Yes, you can choose to surrender the vehicle and discharge the loan in both Chapter 7 and Chapter 13. If you get your bankruptcy discharge you will not be liable for the deficiency balance on the loan after the lender takes the car and sells it.
Answered on Jun 26th, 2013 at 7:55 PM
Yes, although the courts in this jurisdiction have said it is not an option to surrender a vehicle in full satisfaction of the debt, if you surrender, the lender will only be able to file a claim for the deficiency on the vehicle.
Answered on Jun 26th, 2013 at 9:28 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I do not understand why you say "pay double" for your vehicle.
Answered on Jun 25th, 2013 at 9:03 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Yes, that is an option.
Answered on Jun 25th, 2013 at 9:02 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Typically if you surrender a vehicle you do not make any more payments and they will only be paid in the bankruptcy after they file a Proof of Claim (after selling the vehicle).
Answered on Jun 25th, 2013 at 4:50 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You can surrender the car. This will lower your expenses and make your plan payment increase.
Answered on Jun 25th, 2013 at 1:47 PM
Deborah F. Bowinski
Yes it's an option, but I'm not sure i understand why you would be paying double to keep the car. If there is equity in the vehicle you should sell rather than surrender. If there is no equity then you would just pay off the loan. What you REALLY should do is consult with and retain an experienced chapter 13 to assist and guide you through the process. Chapter 13 cases are quite complicated and the success rate for those without representation is very, very low.
Answered on Jun 25th, 2013 at 1:25 PM