How to change from reaffirm to surrender or redemption?

[Critty]

My first post, so I hope I make this short and simple. My hubby and I filed pro se for Ch 7 this week. We listed both of our secured vehicles as intending to reaffirm. After some thought, we think we are going to surrender 1 of the vehicles or maybe do the 722 redemption (we are upside-down $9000 from rolling over from the vehicle before).

Question 1: Do we need to refile a change of intentions?

Question 2: I read that to do a 722 the debt must be more than 910 days old. We bought his vehicle within the last 2 years. Can we do a 722?

[HHM]

You can amend the petition to say surrender...and it is free to do so. You just need to download the Amendment Cover Sheet from your local BK courts website, and simply attach the amended form or schedule.

But, strictly speaking, the statement of intentions is JUST that, a statement of intent. The form has no legally binding significance. If you want to surrender the car, simply stop making the payments and let nature takes it course, so-to-speak.

Regarding Question 2...I am not fully up to date on all the ins-and-outs of 722. You are really discussing two issues, 722 redemption AND lien cramdowns. You can do a 722 redemption on a car regardless of how long you have owned the car. The thing is, if you own the car for less than the 910 days, you have to pay the FULL amount owed to lender. If you have the car more than 910 days, you can do a cram down and reduce the amount of the secured claim to the current market value.

Honestly, your better option is probably to just surrender the car, and get into something you can really afford. Redemption financing rates are lousy, and the way things are looking, it won't really help you anyway.

[Critty]

Thanks for the info. I did more research and realized we cannot do a cramdown because vehicle purchases must adhere to the 910 day rule. Other secured property is subject to the purchase having been made 1 year prior to filing. So I guess we will surrender it. I don't think I will file an amendment so that maybe the creditor will not get a lift of stay sooner. Unfortunately, we need 2 vehicles. The longer we have both, the less stress we will have to endure. The good news is that my hubby sells cars for a living and will be able to find an excellent deal! We will just have to live with the bad interest rate.

We are above the median income but fail the means test terribly. Thus switching to a lower car payment would not affect our ability for ch 7. I will ask trustee if we can get another car before discharge since I'm pretty sure the lender will come and take the current one away before discharge.