car loan...trade in and discharged?

[pink_amulet]

OK quick question....
Our van is not running (keeps stalling), and we have been using my parent's extra car. We did all the minor repairs to try to our van up and working again...but it still stalls...not as much, but it's still not reliable. Anyways my parent are still deciding if they want to sell us their car, they like having an extra one, cause my dad's car is his work vehicle.

Anyways...we called they lawyer and asked the details about what happens if we turn in the van. We still owe $1500 on it. He said no problem, we didn't reaffirm, so we don't owe anything. We can just turn over the van and be done with it.

Hubby and I were talking and thought about getting a newer car, we called car max, and they ran our info. They asked if we had a trade in and we said no...cause we plan on giving the van back. They said we could get financing , but the lenders want a $1500 down payment, which we don't have.

So my question is... Is there a way to try to use the van as a trade in?? I know if it weren't for the BK, we would normally just roll over the rest of the van balance into the new loan. But since the van was included in the BK..how does it work with the balance of we trade it in?? Technically we don't owe anything on the van, it was discharged.......however ....we do owe if we want to keep the van...i'm confused.

Is it done as a trade as if we never had done BK??

pink_amulet

[bkfiler]

if you pay off the $1500 then you own it. think of it that way.

i see it as you still have a trade in that you owe $1500 on. its yours just as any car ever was or ever will be. what the bk did for you is that its your option to pay for it or not. you wont be held liable for it if you do not pay for it and turn it in.

so, i would think that you would work the deal just like as if you almost owned it and just need to pay off the $1500 on it.

the problem with trade-ins is that you never get what you could out of it from a dealer. remember that.

[ODDBALL]

So even if Pink_Amulet wanted to trade the vehicle in, if she owes $1500, which was technically DISCHARGED in the BK, she DOES NOT have the title to the vehicle. The title still techically belongs to the the lien holder. In order to trade the vehicle, you would need to present the title showing proof of ownership. How do you trade a vehicle that you DON'T technically own free and clear. See, it gets more confusing because now my question is: If she goes ahead to trade the vehicle in, and the lien (that was technically discharged) comes up because of no title, what happens then??? The car was included in the BK. Will the lien holder allow this? I don't know!!!! Very confusing if you ask me.

[bkfiler]

i beleive its no different then trading in a vehicle you are making payments on.

everyone does it now days. bk has nothing to do with it except you don't really have to pay it if you turn it in. that is a separate issue.

forget that you have a bk on it. when you trade it in, if they give you or you can sell it for $3000 lets say then you have to make sure the lienholder gets $1500 of it to turn over the title.

same as if you were going to trade in any other car that you still owed payments on.

as for the car deal you aer trying to make, if they are only giving you $1500 and thats how much you own then there isnt any downpayment being made.

i would try to fix it and sell it to a private person if possible.

[StaciMM]

If you owe more than its worth and trade it in, you roll the extra into the new loan. Such as you owe $1500, they give you $500 value for the vehicle, and add $1000 to your new loan. Same works in this situation-except that if you can't get more than you owe, no reason to take on the deficit loan balance as you can just give it back to the lender. If they will give you $2000 value on it, trade it in just like non-BK related, and they'll pay off the lien and apply the rest to your downpayment.

You can only trade it in if the new loan pays off the existing lien on the vehicle. Its not a matter of what you owe, but how much the lien is worth. They're not giving up a vehicle's title unless they get paid for it...