Turning in car after BK closes

[Logan]

I did not reaffirm my automobile and I'm thinking of giving it back to the bank. My BK closed a few months ago and wondering if anyone has any experience with this?

Thanks,

Logan

[leftyf]

Good question. My attorney says that I may have to give up a car in my 7 since the numbers show I can't afford it. What exactly does that mean when I cannot reaffirm an auto? Should I just keep it until they come to get it? Or make payments anyway even though I haven't reaffirmed? I haven't filed yet so is the Judge going to ask for my keys on the spot...or will I just be in contempt of court, or something like that, if I don't turn the car in? This is a topic near and dear to me at the moment.
Lefty

[BearChaser303]

I too will be anxious to see the responses to this thread. I may be in the same boat as lefty.

[Logan]

Anyone?

[FreshLikeADaisy]

Well, I am no expert (my car has been paid off since 99, so I have no dog in this race) but basically the thing to do if you want to maximize the amount of time you get to keep the car is to make like you are going to reaffirm, and then don't. Keep the payments current, but don't sign a reaff. You will still have to give up the vehicle, but you may get a few more days or weeks out of it. The judge doesn't ask for your keys; you work with the creditor on this, and hopefully they will tell you when they intend to come get it.

BTW, if you sign a reaffirmation agreement, you have a certain amount of time to rescind that reaffirmation agreement while the bk is open, but after that it's set in stone and you owe that money no matter what. If you did not reaffirm but continued to make the payments, you can walk away from the vehicle at any time with no further costs to you; the debt was discharged in bk and you did what's called a ride-through. Good luck to both of you!

[funEface]

We're doing the same thing. Intended on reaffirming but actually did not. Now that we're discharged we've decided to no longer make the payments. We want them to come asap and get it though (so we don't have to keep paying insurance) so we will be calling the bank sometime this week. Hopefully we can get them to take it back sooner rather than later but I'm figuring since that's the way I want it to go they will take their time ;)

[teddy26]

When "surrendering" your vehicle, is there any paperwork to sign? I know to file a "release of liability" with the dmv. But I'd just love to have the vehicle either picked up or dropped off at a dealership and walk away without signing anything... Once the bk is discharged, they (finance) cannot ask you to sign a reaffirmation, can they? never know with those sneaky dealerships....

[Logan]

Sounds like it won't be a problem. I'll call the bank next week and let them know. I'll call them just before the next payment due date.

[FreshLikeADaisy]

Teddy, chances are good they will send their repo guy out to come get the car. As far as I know, repo men don't ask anyone to sign anything. Now, a creditor can *ask* you to sign a reaff, but that doesn't mean you have to sign it. Chances are good that your lender has a repo man they work with in your area; call the lender and find out if you can drop it there, if not at a dealership.

FunEface, seems like you could stop the insurance and do the DMV paperwork now: because you didn't sign a reaff your liability was discharged in bk, and you can literally walk away from the vehicle. You might want to double-check this though; I don't know if recent damage to their vehicle -- after you cancel insurance but before they come get it -- would constitute a new debt. Is there a place you can drop it off and be done with it, like Teddy suggested? Just a thought.

[BKcrazy]

I gave mine back the day after my 341. They were more than happy to work out a time to get it. In fact they were going to meet me at the airport to get it. But, in the end my friend wanted to take me to the airport. So, the recovery company picked it up the night before. I gave them all the keys, the key cut code, and maintenance records on the car. I even said I was keeping the plate so they could get a temporary. I did a ride through pretty much. I had two months of no payments, before I filed, because money was tight. Then once I filed I decided I didn't want to keep the car, so my attorney said don't pay on it and just give it back whenever. They never even tried to lift the stay and the loan company told me it was appear on my credit that I gave it back in the BK. They are really nice when you call them, it saves them money to not have to send out a recovery team to find you.

I asked for a receipt. They showed up with two copies, one for me and one for them. I signed their copy and the guy had signed mine. I was really sad to see the car go, but it was a positive experience.