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    #1

    Discharging process

    Hello,

    I am new to the BK Forum. My wife and I recently lost our home to foreclosure and we started our process of filing for bankruptcy. Last week, we had our initial meeting with a BK attorney, and he determined that we are ideal candidates for Chapter 7. After doing our budget, we determined that we can no longer afford to pay our car's $550/month payment for the next 3 years. Our BK attorney suggested that we surrender the vehicle to our local Honda dealership. My question is exactly how long can we keep the car? Can someone please explain to me the discharge process. Thanks.
    Tags: car, chapter 7, discharge
    #2
    If you can no longer pay for it, why try to keep it and gas it at these prices? You could probably keep it a couple of months, perhaps longer, after you stop paying on it. But if I were you, I would make arrangements as soon as possible for alternative transportation, then surrender this vehicle. Surrendering a vehicle always looks better, than having it repossessed. Just have it in clean condition—detailing is not necessary—take pictures inside and out, in case a dispute arises as to its condition, and get a signed receipt when you hand over the keys.

    Good luck.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    Comment

      #3
      what if you have been to the 341 and noone from americredit has called how can i surrender the vehicle

      Comment

        #4
        Originally posted by debtrelief08 View Post
        what if you have been to the 341 and noone from americredit has called how can i surrender the vehicle
        "To go bravely forward is to invite a miracle."

        "Worry is the darkroom where negatives are formed."

        Comment

          #5
          I have posted this a few times on this board, but I will say it again. We are giving up one of our vehicles, our attorney said that the company won't bother coming to get it until after discharge. I filed 3 weeks ago and I am still driving it.

          Comment

            #6
            Thank you for the advice. When you say that it always looks better to surrender a vehicle, to whom are you referring?

            Comment

              #7
              Because it looks to the Trustee--and the creditor--that you are trying to be as cooperative as you can in difficult circumstances. I'd much rather have the notation of 'voluntary surrender' in my paperwork, than 'repo'ed'. Anything to try to help make the entire process easier. But that is just our opinions, 'Cat and 'Hub
              "To go bravely forward is to invite a miracle."

              "Worry is the darkroom where negatives are formed."

              Comment

                #8

                thank you for the response i really want to get rid of the vehicle but i have not bought another will this hold up my discharge

                Comment

                  #9
                  I can't answer your last question as we have not been discharged yet, but for other reasons. I'm sure that another member that has an experience closer to yours will chime in soon.

                  Good luck.
                  "To go bravely forward is to invite a miracle."

                  "Worry is the darkroom where negatives are formed."

                  Comment

                    #10
                    debtreleif08, Another thing you may wish to do, if you like this car; go in to your mortgage company, explain honestly, and they do not want your car. They want your interest and money. They MAY offer you an extension and rewrite of the note to lower the payments. HOWEVER, do not sign a reaffermation unless you check with your lawyer first. We chose to reaffirm ours but if you get fooled into it, you cannot bk that debt. American General attempted to slip a reaffermation past us to our Trustee unsigned thinking that the Trustee would say, hey you didn't sign this and it get filed by trick. Not very nice of them.

                    'Hub
                    Last edited by AngelinaCatHub; 06-25-2008, 08:03 AM.
                    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                    Comment

                      #11
                      Originally posted by AngelinaCatHub View Post
                      debtreleif08, Another thing you may wish to do, if you like this car; go in to your mortgage company, explain honestly, and they do not want your car. They want your interest and money. They MAY offer you an extension and rewrite of the note to lower the payments. HOWEVER, do not sign a reaffermation unless you check with your lawyer first. We chose to reaffirm ours but if you get fooled into it, you cannot bk that debt. American General attempted to slip a reaffermation past us to our Trustee unsigned thinking that the Trustee would say, hey you didn't sign this and it get filed by trick. Not very nice of them.

                      'Hub

                      thanks to both you and your spouse for the response but i am confused should i call them the car company i was under the impression that i should have no contact with them

                      Comment

                        #12
                        Car Loan Extension?

                        We haven't filed yet, but I went in and talked to the Credit Union who holds the notes on our two vehicles. They said we may be able to get a one month extension on the payment, we have to sign a paper making the request.

                        This doesn't have anything to do with a reaffirmation does it? I don't want to get myself trapped into something unknowingly. I"m just trying to hold off the phone calls as long as possible.

                        Comment

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