Repo or not?

[325Falcon]

I am just a tad bit confused.

We will file a 7 at the end of this month. We have two cars with upside down loans so both are going back to the bank.

We have not paid the payments for 2 month now. I have been stringing the banks along (checks in the mail) hoping they will not repo before we file.

So if we manage to avoid the repo untill we file the banks wont be able to repo without first getting a relief from the automatic stay. Correct?

If the banks do repo prior to us filing this debt can still be discharged. Correct?

If the banks do repo prior to us filing and the debt is discharged in the BK will this be a repo on our credit report or not? Does it really matter?

Thanks

[kiddles]

Once you file, they can't repo unless they go to Court and ask to be allowed to do so.

Whether or not they repo, the debt is included in the BK and unless you reaffirm the debt, you won't owe it.

Generally, it's better to not have a repo on your credit report. If they repo, they can report it.

[325Falcon]

So it would be wise to "hide" said car untill after filing to avoid the repo then wait for the bank to ask the court for the car back.

[help me 07]

good question im going through this too.
i need help on this one

[rrockinggramma]

Although it is better to not have the "repo" as such listed on your credit report, the fact that you are already late with your payments has been reported as well. In my opinion, the damage has already been done and you are delaying the inevitable. It may take a little longer to repo your car once you file a chapter 7 but it will happen. Hiding a car is also stressful. We had to literally keep it in the garage with the door closed and couldn't drive it anyway. If you go to a store, they can take it the second you get out and leave it parked. And some have said that the repo person will knock on your door. They will lay in wait. It is stressful. It will be listed as IIB/zero balance eventually but could also say,repossession. If you want to keep the car why not go for a 722 while in your chapter 7?

[325Falcon]

I dont want to keep the cars because they both are upside down, one 6K the other about 3K. I just dont see any reason to keep any "bad" debt though the BK. Besides I cant afford the payments now. I do want to keep the cars as long as possible, so I will play the cat and mouse game for a while so we can save some cash to buy a different car. I will never ever buy another NEW car on credit.

It is true that CC spending mask a whole lot of spending. We have been living without CC for about three months now and it is a real eye opener! We make decent money for the AO that we live in but it is clear that we have been spending credit and not earned money for a long time.