voluntary repossession

[zactak]

Hey everyone!

So, I was going to file for bankruptcy tomorrow, but my employer suspended me from my job and while the reasoning is petty, I think they're using it as an excuse to get a rid of me. Since the training would disqualify me from unemployment, I'm going to voluntary resign. Instead of using the money I was going to spend in bankruptcy is going towards moving in with my folks.

I have a car I bought in April of this year. I haven't had the money to get my plates in my car yet and making it legal would be $1,500-$1,600. Since that number isn't feasible, I'm thinking of giving the car back to the bank. The back is a buy here-pay here dealership. If I'm a day late, they're calling my parents, sister, grandma, and five of my friends. I'm afraid that if I give it back and after they sell it, I won't have the ability to file bankruptcy yet and they will start calling all my references to get me to pay up. While they can call me all day long, I don't want them to call my references when I cant pay up. Do I have any laws on my side to stop them from harassing my friends and family?

[ValleYum]

Whoa.... Won't resignation affect your ability to draw unemployment, too?

I looked around on the net and found this:

In order to establish unemployment eligibility in Missouri you have to:

1. Be a resident of Missouri. If you are not a resident of Missouri, but worked in Missouri at your last job, you should still have Missouri unemployment eligibility.
2. Have worked and earned income in Missouri.
3. You must not be disabled.
4. You must be able to work.
5. You must be actively looking for a new job.
6. You must have lost your job through no fault of your own. If you quit your job or were fired for 'just cause' you may not be eligible to receive benefits.

http://unemploymenthandbook.com/state-unemployment-directory/64-missouri/863-missouri-unemployment-eligibility

If they are just trying to get rid of you (and there is no just cause), I'd be tempted to let them fire me so I could draw UE. If you did quit, you could try to claim that it was a hostile work environment. But, since you plan on going back to school - your reference/resume won't be as crucial as if you were diving right back into the job market - so I guess what I am saying is being fired in order to get UE wouldn't be the worst thing in the world.

My personal thoughts about your car: take it back to them, tell them you lost your job, give them your forwarding address and perhaps give them a C&D letter telling them to contact you only by mail and to not contact anyone else since they know how to locate you. Whatever they claim to financially lose on the vehicle you can discharge in your BK although your credit report may still show the voluntary repo. Hopefully others can chime in with better/more info and opinions.

Best of luck to you!! Hope everything works out for you.

[zactak]

Thanks for your response, ValleYum! I love your name... Not sure why, but I do

What I meant by saying they were using the excuse just to get a rid of me, I was meaning it was a petty lapse in judgment that I made that would disqualify me from unemployment. Whether they fire me, or I quit, I won't be able to receive unemployment.

I asked about the car more to put my dad at ease. He is stressed about my situation because of my car. I think the best solution is to voluntarily give up my car. I will include my car in bankruptcy once I can afford to file. I'm just afraid the dealership will harass my friends and family because it will be a while before I can file or pay anything towards my car. I don't want then to be inconvenienced for my mistake.

[AngelinaCat]

Can you just ride out the suspension, take whatever training you have to and go on with your employment? I know you don't like your job, but one can't be 'picky' right now.

[zactak]

Can you just ride out the suspension, take whatever training you have to and go on with your employment? I know you don't like your job, but one can't be 'picky' right now.

Unfortunately, I don't think my employer is going to ask me to continue my employment. They're using this is an excuse to fire me.

[malf1204]

Why not file bankruptcy now? The automatic stay will prevent them from calling anyone.

[ValleYum]

Why not file bankruptcy now? The automatic stay will prevent them from calling anyone.

^^^ Very good suggestion!!! ^^^

I still think I would let them fire me - then you can check the terminated/fired/discharged box when you apply for UE . File it and let the bureaucracy decide whether you get benefits. The worst thing they can do is deny you.

[zactak]

I wish I could file now, but I will have to take the money I was going to spend on that to move and break my lease at my apartment.

[bcohen]

What exactly are you (possibly) being fired for? Was it something that in and of itself will result in unemployment insurance denial (eg. employee theft, drug use) or something that requires that the employer demonstrate a pattern such as tardiness or customer complaints? If the problem was alleged rudeness to a customer/supervisor or something of that nature, you may be better off to see if you get fired and then vigorously appeal the UI if it's denied.

In any case, if you are in your 20's or 30's with a negative net worth, poor job prospects, and parents willing to help, I agree that you should "cut your losses" and go back to school.

Once you've made this decision, the only thing you should be spending money on is packing and shipping your stuff back to your parents' house. There is no need to pay anything else on your unsecured debts, on this car that you can't even drive, or even to pay the "lease break fee" to the apartment complex. If you tell them bluntly that you lost your job, you plan to move by date X, and you do so, they are unlikely to pursue eviction proceedings against you after you have already moved out and given them the keys. They will most likely either write off the balance, or possibly hire a collection agency to collect it from you, which will make it just another unsecured debt to discharge in your eventual bankruptcy.

Once you graduate, and are working again, I guarantee you'll be able to rent another apartment--regardless of whether you pay the penalty fee or not!