Van repo'd How much trouble did we just make for ourselfs?

[Teri]

We are planning on filing a chapter 7 and quit making payments on our van 3 months ago (we are way upside down on it and it needs a lot of work). It was repo'd last night, well I should say this morning. I had no idea it would happen that fast, but it did. The guy was nice enough, he let us take all our junk out of it. I am sure it will now go to auction and they will sue us for the difference. Do we need to file the bankrupcy ASAP, or is it okay to wait a little longer? (we are behind one mortgage payment and 2004 taxes on our house that I want to get current before we file). Thanks for any advice I can get

[HHM]

There is no rush regarding your van, its gone. They will charge you for a deficiency (the difference between what you owe and what they sell it for), but that debt is easily discharged in Bankruptcy. Foreclosure on a mortgage usually takes several months, so again, you have some time. However, if you want to keep the house, you need to become current on the mortgage, or at least don't be any more than 1 month behind.

If you get sued, then you should file ASAP.

[Teri]

thanks so much for the quick reply - we do want to keep the house, which is why we are waiting on the bankrupcy - we should have it current within 2 months and then we have last years taxes.

[tracy1878]

we voluntarily surrundered our van, but the finance company is threatening to sue and garnish hubby's wages, but it's not even been auctioned yet. We are filing on our own, and i've been trying to wait around for a final amount due, but haven't gotten it yet

[HHM]

we voluntarily surrundered our van, but the finance company is threatening to sue and garnish hubby's wages, but it's not even been auctioned yet. We are filing on our own, and i've been trying to wait around for a final amount due, but haven't gotten it yet

You don't need to wait for that.

List the creditor as an Unsecured Debt,
Reason for debt: Deficiency Balance
Amount of Debt: Unknown.

[Teri]

how long does it usually take for these vehicles to go to auction and the company to come back and sue? our van had a 26K balance and they will probably not get more than 5 to 6K on it. It has a lot of miles on it

[tracy1878]

we surrendered our van, but yet we got a letter last week wanting us to take it back, as long as we give them 1600 bucks... yeah right, why can't they get the hint that we don't want it? We signed the surrender paperwork... DUH! It said we have 2 weeks from the date of the letter to get it, so i would assume it would go to auction by the first week of august.