Voluntary Surrender

[twiz88]

I currently have a 2004 Acura TL financed through Santander which I included in my Ch. 7 BK case. The bank sent me a Voluntary Surrender form to sign so they can pick up the vehicle which we both agreed to happen after discharge im cool with that.

Now here's my question I need some advice. I financed a Gap, an a Extended Warranty policy in my loan the policies are through CarMax. If I cancel the policies Carmax will send the refund to the bank first (Sandanter) then in return Santander would issue me a check if I don't have a balance on my loan (normally the refund would go towards to auto loan balance).

Should I wait until the case is discharged and vehicle returned to Santander before I cancel the policies or should I cancel now?

I sure would like to have that refund.

[AngelinaCat]

Hi Twiz. I broke your post up into paragraphs so that it would be easier to read for some of our tired old eyes.

I don't know that I can answer your question about the extended warranty, etc., as we only dealt with a vehicle that an acquaintance owned. 'Hub foolishly co-signed the car note for this guy, because our credit was 'golden' and this guy had no credit. I do know that there were a lot of extras tucked into this loan to cover other things, but I don't know what exactly.

Anyway, the time came when this guy was no longer making payments, and we started getting the 'dunning' notices. We made this person surrender the car. After that it was sold at auction, and we and he were sued for the difference. The car sold for about $6K, and the difference was $13,000. We filed BK (we were going to anyway). Acquaintance did not and got the default judgment for $13,000.

There were no refunds for anything.

[twiz88]

Hi Twiz. I broke your post up into paragraphs so that it would be easier to read for some of our tired old eyes.

I don't know that I can answer your question about the extended warranty, etc., as we only dealt with a vehicle that an acquaintance owned. 'Hub foolishly co-signed the car note for this guy, because our credit was 'golden' and this guy had no credit. I do know that there were a lot of extras tucked into this loan to cover other things, but I don't know what exactly.

Anyway, the time came when this guy was no longer making payments, and we started getting the 'dunning' notices. We made this person surrender the car. After that it was sold at auction, and we and he were sued for the difference. The car sold for about $6K, and the difference was $13,000. We filed BK (we were going to anyway). Acquaintance did not and got the default judgment for $13,000.

There were no refunds for anything.

Ok Thanks. Usually the extras have to be cancelled separately, I cancelled the extras before on previous auto loans but that wasn't during my bankruptcy case. Glad you was able to file and not have to pay that $13,000.

[stevie2012]

The gap refund will to your lender, providing you financed it with your car.

I don't think it will matter when you actually cancel. The gap coverage is voided if you no longer have the car.

I'm pretty confident YOU will not get the refund.

I'm in the auto business and from my experience, unless you put an absurd amount of money down, very rarely are there credits after a car is repo'd.