If you do not reaffirm a car, Is it considered a repo?

[momof5]

We made the decision to back out of our initial decision to reaffirm our vehicle. Not quite sure what will happen next as we are current on our payments at this point but I really dont want to pay for August but will if needed.

My question is this... Will letting the car go be considered a repo or should it show up as IIB on our credit report?

thanks for your answers!

[AngelinaCatHub]

First educate me, what is IIB? If you do not wish to keep the car, notify and park it. Take pictures of it's condition and cooperate with it's pick up or volunteer to drive and park it in the lot. Get a reciept for it with condition noted. 'Hub

[AngelinaCat]

Hi Momof5 (and Basset Boy 6): If you have definitely decided not to keep the car, e ither by reaffirming or doing the ridethrough, then I would call the mortgage holder first thing in the morning and arrange to surrender it. Make sure it is clean, though do not detail; photograph it inside and out and make whomever picks it up sign a receipt for it after you two have done a walk-around it.

Good luck.

[BK2008]

ACH: IIB shoud be 0IIB, which means the balance is zero, included in BK.

[momof5]

IIB is included in Bankruptcy. I have read on here that anything included in your BK should say that on your credit report.


I have a call in to the attorneys office (God can only predict when they will call back though) as we filed that we were reaffirming the car. Now after almost 2 months into this Bk we have decided the smartest thing to do is to rid ourselves of the payment as we are 'upside down' by a few thousand due to having traded in a previous vehicle that had a loan when we purchased it.
This was a difficult decision to make as we have already paid on it for 3 years(feels like money flushed down the toilet)....BUT on the other hand still have 2.5 years to go. Hubby is pretty good at doing our own car repairs but its a 2002 and is slowly nickel and diming us. Not to mention its $300 a month that we really dont need. My daughter just bought a beautiful vehicle that is in tip top shape for $2200! So that will be my goal after we give this back.

I just wanted to know if its considered a repo if you voluntarily surrender it during a BK for future knowledge. Or if it is reported the same as any other debt on a persons credit report. IIB.

EDIT TO ADD: This car loan is through a credit union and there are no ride throughs.Also should add that our attorney would not sign the reaffirmation agreement as it is considered undue harship. I highly doubt that the judge will agree to allow us to reaffirm as we show -900 on our shedule.So either way they will probably get the car back. Granted our car & mortgage payment are our #1 priorities and we certainly can afford to keep the car.

[TEW]

If you kept your payments current and it was included in the BK you can keep the car or walk away or reaffirm it is up to you.
If you reaffirm the loan with the lender and something happens and you can not pay the loan. The lender can come after you for diminishes. If you just keep paying you keep the car and get the tattle when the loan in satisfied. If you want to get rid of the car you can just turn it in. and walk away you are not longer responsible for the for that debt.

[magyar123]

If you kept your payments current and it was included in the BK you can keep the car or walk away or reaffirm it is up to you.
If you reaffirm the loan with the lender and something happens and you can not pay the loan. The lender can come after you for diminishes. If you just keep paying you keep the car and get the tattle when the loan in satisfied. If you want to get rid of the car you can just turn it in. and walk away you are not longer responsible for the for that debt.

But credit reports will never reflect that you are actually still paying for it. All that will be refelcted is that it was included in bankruptcy.

[BK2008]

But credit reports will never reflect that you are actually still paying for it. All that will be refelcted is that it was included in bankruptcy.

Then why am I having so much trouble getting me credit reports fixed?? I turned in my car, and one of my credit reports is showing 0 bal, paid satisfactory. The others are showing the balance due, no mention of BK.

I have disputed it twice, and was told by one cra that I was being 'frivolous'.

What does it take to make this go away?

[b_girl]

We just gave our car back to our bank, as we felt we couldn't afford to keep it. My understanding is that if you voluntarily give a car back during bankruptcy, it isn't considered a repo, but I could be wrong.

[momof5]

Paralegal said it will show up as a 'repo' on our credit report..BUT she isnt really sure so she'll get back to us. I wont be holding my breath.


Has anyone seen their credit report after surrendering a vehicle that they were not behind on payments with?

[justmoved]

momof5 please let me know what you find out

i filed for bk on 6/20, and yesterday i pulled my equifax credit report. everything showed IIB with a zero balance except my credit union car loan and my credit union visa. when my lawyer prepared my paperwork i told him i would keep the car and visa but now i'm thinking differently. i have not signed a reaffirmation agreement with my credit union, i only spoke with someone and told them that i intended to keep it. boy do i wish that both the visa and the car showed as zero on my credit report and i wonder why they don't. and i'm also wondering if i let the car go at this point will it show as a repossession? so i'm anxious to hear what you find out. thanks in advance for responding.