Can I surrender my truck now months after including it in Chapter 7?

[jackdanielhills]

I'm a newbie so I am sorry if this is a dumb question. Filed Chapter 7 and after a long costly process, it was dismissed in Oct. 07. I never reaffirmed my truck but have made all payments on time. My attorney said not a problem, they would not take my truck if I was making payments. I would like to trade it for something with better gas mileage (it gets 13/18 mpg). I got approved from Capital One for a 12% interest rate. The truck's payoff is $3500 more than it is worth. Can I take it to US Bank (the lender) or is it too late? It was included in my bankruptcy and shows 0 balance on my credit reports. Would it hurt my credit more or possibly owe the difference later when they sold it. It seems like it shouldn't, but after going through the BK I question everything now. I really hate to finance the negative equity from it on the next car if I do not have to.

By the way, I've never posted before, but this forum has been so helpful to me.

[funEface]

I believe you mean discharged and not dismissed in your first sentence, correct?

As long as it was discharged in the bankruptcy then you can surrender any time you'd like. They can never come after you for the negative equity. We did the same thing. We called the bank and said we'd like to voluntarily surrender the vehicle- they are in a different state so two days later the repo guy called and arranged to pick it up. Simple.

Happy car hunting!

[jackdanielhills]

Yes, I meant discharged not dismissed. Thanks for your help.

[Heather_NNJ]

I have a question to your question...hope you don't mind.

When it comes time to get a new vehicle, must the vehicle that was discharged in BK be surrendered to the bank or can it be used as a trade-in towards the new car? I guess it depends on whether or not your upside down at the time correct?

Thanks

[needafreshstart]

I did the same thing to US Bank. They gave me the option of dropping it off at a local US Bank branch or they'd come pick it up, the lady was actually quite pleasant that I talked to. Repo guy is going to come by this week to pick it up.

[jackdanielhills]

I was told I could trade it in by the dealership. Since I'm upside down in it, (the term they use when you owe more than it's worth), you add that amount to the new loan. It would benefit the bank where I financed the truck originally but not so great for me.

[keepmine]

If the bk was discharged and you didn't reaffirm, you have no liability for a deficiency balance.

[Cali]

ITA!!

If the bk was discharged and you didn't reaffirm, you have no liability for a deficiency balance.