Surrendering Vehicle

[tyspruiel]

We have been to our 341 meeting and the trustee said nothing about if we surrender our car that we would have to pay a balance if the vehicle was sold. We went to surrender the car to the credit union today and they wanted us to sign this form stating that if the vehicle was sold for less than the amount we financed it for we would be responsible for the remaining balance. We did not sign it and luckily the person that was there was just the assistant and he really did not know what was going on and told us to wait until monday when his boss get in. Will we have to pay the balance or is that just standard procedure? We do not have any money to give anyone else. We are broke,broke, broke. Please someone answer soon. :o

Thanks in advance

[tinroofrusted]

Do not sign anything like that. You are not required to. All you have to do is drop the car off and give them the keys, period.

[tinroofrusted]

AND, if you are filing Chapter 7 and you voluntarily surrender the car, the debt is wiped out upon discharge. I know, because I surrendered mine. AND there was a $3000.00 difference left after the car was sold.

[tyspruiel]

AND, if you are filing Chapter 7 and you voluntarily surrender the car, the debt is wiped out upon discharge. I know, because I surrendered mine. AND there was a $3000.00 difference left after the car was sold.

Did they send you a letter stating that you had to pay the difference? My husband did sign his name but then put a line through it once he finished reading it all. Would that matter or could they still use it?

[tinroofrusted]

Did they send you a letter stating that you had to pay the difference? My husband did sign his name but then put a line through it once he finished reading it all. Would that matter or could they still use it?

No they didn't, but they did try to pass off negative information to the credit bureau, writing it as a charge off.

You need to talk with your attorney, and let the Trustee know what's going on immediately. This is illegal activity!

[missy2]

I'm in the process of filing right now too. I had a car, with a re-fi loan on it for $4k (99 ford escort). The $4k loan was combined with a credit card debt and a personal loan (all issued by my credit union). The 3 were combined last year because I was having trouble paying the debt. Anyway, my troubles persisted. I was able to pay for a while but then I moved and changed jobs. I actually make more now, but my rent and living expenses are higher. Anyway, I surrendered the car and they wanted me to sign a "voluntary surrender form", which stated that I was still liable for all debts. The lawyer told me NO WAY!! So I didn't. The bank was furious. They were supposed to pick up the car on that Friday, the day I told them no on the form, Wednesday - they showed up to get the car.

[tinroofrusted]

Actually, according to the Bankruptcy law, companies contacting you to pick up surrendered property are violating the law... they aren't supposed to even get that stuff until the discharge is final.

[HHM]

Actually, according to the Bankruptcy law, companies contacting you to pick up surrendered property are violating the law... they aren't supposed to even get that stuff until the discharge is final.

If they are filing pro-se the finance company can contact them regarding surrender, and no, they do not have to wait until discharge to surrender the car.

Any deficiency balance will be discharged in the BK...so don't sign anything stating otherwise. You should be the one having them sign a form stating that they have received the collateral.

[tinroofrusted]

If they are filing pro-se the finance company can contact them regarding surrender, and no, they do not have to wait until discharge to surrender the car.

Any deficiency balance will be discharged in the BK...so don't sign anything stating otherwise. You should be the one having them sign a form stating that they have received the collateral.

They can't harass these people like this though.... can they?

[missy2]

I got a simple letter in the mail...

[tyspruiel]

Well, I contacted my Att. today and he told me to not sign anything and he would take care of it all and that they are just trying to cover there a**. He made a phone call to my credit union and the car was picked up within a few hours. I handed over the keys and title and they loaded the car on their truckbed. My Att. called me later and asked if they had done this and I told him yes. He assured me that they will not be contacting me at all with any letters or forms or remaining balances. I asked him what did you say too them. He said just threatened them with a suit and they backed off. I am so relieved that its over.