Auto surrender?

[Pavetim]

I am so confused and my layer is no help at all. I filed for ch 7 and think just waiting for the trustee to cash the over exemption money order for it to be discharged. I have a car with USAA and instead of keeping paying storage I asked them to get it since it's in the bk they said I need to do a surrender request and that's not guaranteed to be approved if it's not worth it to them. I owe 53k and KBB is 36k so I highly doubt they are just going to say keep it even if they did I read I can't sell it, trade it or get the title. So I'm not sure what to do here. I would either like for them to come get it or maybe negotiate a price so I can sell or trade it so they don't have too, as I highly doubt they will just say keep it

[justbroke]

Welcome to BKForum.

My guess is that you paid very little for your Chapter 7. What I mean by that is that you paid the bargain basement price well under $2,000 without any extra services. A $53K balance on a car with a current value of $36K would make me want to get a 722 Redemption and redeem that. A bank must take a surrender or just let the car sit there. You don't have to keep property in a Chapter 7. What did you put on your Statement of Intentions? Did you put surrender or reaffirm? In Florida you must choose redeem, reaffirm or surrender.

There are too many things going on here so we must start with your statement of intentions and what you planned to do with the vehicle.

[Pavetim]

I paid $2500 and wasn't offered any extra services. I put surrender. I'll have to look and see what that 722 redemption is

[justbroke]

I paid $2500 and wasn't offered any extra services. I put surrender. I'll have to look and see what that 722 redemption is

If it is surrender, then you only need to make it available for the bank to come and get it. That is the USAA's responsibility to come and get it and not yours to fill out forms to make them think about coming to get it. If there's a USAA branch near you you might be able to arrange to go deliver it to their parking lot. You can't force them to take it and it's not your job to do so.

A 722 Redemption may be too late since you already put surrender.

[Pavetim]

Case isn't fully discharged yet so I will see what they say once it is. I read if they still refuse to take it you can take it to court and offer to buy it for $1

[justbroke]

Case isn't fully discharged yet so I will see what they say once it is. I read if they still refuse to take it you can take it to court and offer to buy it for $1

It's not that simple. First rule of bankruptcy is that all liens pass through bankruptcy with few exceptions. The bankruptcy will only discharge your personal obligation to pay the note but the lien survives. You cannot force a creditor to take any action including their right to repossess (or foreclose) upon the collateral; in this case it's a vehicle.

There's a famous case with General Motors (GMAC) for refusing to repossess and also, and this is the kicker, refusing to release the lien. GMAC in that case told the debtors that GMAC would not repossess and if the debtor wanted a relief of lien then they'd have to pay. The lower court found for GMAC and said they didn't violate the permanent discharge injunction. On appeal, however, the First Circuit reversed and remanded. They opined that what GMAC was coercive and an "intent" to collect a discharged debt. Pratt v. Gen. Motors Acceptance Corp. (In re Pratt), 462 F.3d 14 (1st Cir 2006)

So be careful what you read on the internet. At best GMAC had to repossess or release the lien. I don't know where the $1 comes from. You cannot redeem a vehicle, for $1, after the case is discharged. A redemption must be entered into prior to discharge.

[Pavetim]

https://collateralbankruptcyservices...f%20the%20lien.

[justbroke]

https://collateralbankruptcyservices.com/why-cbs/43-if-lien-holder-will-not-repo-my-car-what-options-do-i-have#:~:text=In%20a%20case%20where%20the,lender's% 20release%20of%20the%20lien.

That's theoretical. Motion practice around that is typically what happened in the Pratt case. The lender is not going to get a $36K vehicle redeemed for $1. It would technically be a motion to value and then propose to pay the fair market value. First, you'd have to get an attorney to take the case with the hope of earning and recovering fees. Second, the court would need to agree the vehicle is worth $1 which is unlikely. Finally, remember that a court can't force a creditor to act on its rights, including repossession. Read the Pratt case.

[Pavetim]

Ok no worries I don't want a 36k car anyways I will just save up and can get a nice used one for 20k. Was really just wondering options and if it's normal to say you have to apply for surrender and that's not a mandatory approval

[justbroke]

In Florida, and the 11th Circuit, you must redeem, surrender, or reaffirm. Those are the only three options. You do not need to surrender. Many actually reaffirm, some redeem, and fewer surrender.

[Pavetim]

Car I will surrender, the motorcycle I will keep so guess that's a reaffirm both with USAA. Have 1 other truck with different lender i want to keep so guess need to reaffirm that too. My lawyer is horrible he didn't explain any of this stuff to me

[justbroke]

Check your Statement of Intentions and make sure it matches what you expect and want to do. If not, please lean on your attorney.

[Pavetim]

So to reaffirm a loan to make sure it still goes in the credit do I do that after discharge?

[justbroke]

Reaffirming won't automatically make sure it still reports. Many creditors require an acknowledgement by the debtor (and also agreed by the debtor's attorney) that the creditor can continue to report. They don't want to run afoul of the discharge injunction even though the debt is reaffirmed. You cannot reaffirm a debt after discharge. You. must enter into a reaffirmation agreement before discharge.

[Pavetim]

I have been making payments on my truck and motorcycle and haven't done anything