How does it work to surrender a vehicle after I file?

[Keebler]

This isn't working the way I expected.

I filed a couple of weeks back and the credit union just figured it out today. I've got a newer vehicle that I haven't been making payments on for a few months and I was planning on giving it up eventually. I indicated on the petition that I intended to surrender this vehicle.

Today the credit union called and said they talked to my attorney and found that I intended to surrender the vehicle. They're asking me to drop it off at a particular branch office at least an hour before they close.

Right now the second vehicle is pretty convenient so I hate to lose it even a day earlier than necessary. On the other hand, it's got to go eventually.

Aren't they supposed to petition the court to lift they stay and come and get it themselves? Is there any good reason for me to be cooperative and drop it off versus waiting until they go through the work of repossessing it? Are they being real informal for no reason or is there a trap involved. I'm confused...

[cool33097]

No, because you are doing voluntary.

[keepmine]

Actually, they should not be talking to you at all-only your lawyer.
If you're determined to play hardball, just make 'em jump through the hoops.
Likely, they'll wait until after you're discharged and no longer have the automatic stay to deal with and just repo it. Make sure you don't leave any personal property in the car.

[Tabbygirl]

I guess it depends on how you feel about surrendering the vehicle; we just contacted Nissan and turned it in at a dealership. Then, called Nissan again and informed them I'd turned it in and they verified I could drop my insurance as I no longer had possession.

I just wanted it over with, so I dropped it off. IMO, no need to be difficult since I knew we would surrender. Now, if they had annoyed me about something.....

[Cali]

They aren't suppose to talk to you after you file. They have to get a relief of stay in order to get the vehicle before you are discharged.

I know this because I just went through it. I stopped paying SUV in March, filed in June, 341 in July, company petition for relief of stay last week, and SUV was picked up this week. I was surprised they did the petition, since the last day for objections is in 17 days.
I called the company asked when they were picking it up, they told me and the following day someone came and picked it up. The guy gave me paperwork, I gave him keys, and he drove off.

No, because you are doing voluntary.

[b_girl]

If there is no relief of stay in place, I wouldn't give it up until there is one...but it sounds like they will come after it sooner rather than later (before discharge rather than after). Are you hoping to preserve your relationship with this credit union? If so, cooperate. If not, let them come after it. In our case, we did voluntarily give up one of our vehicles without a relief of stay being in place because we had already replaced it and didn't need the extra cost of insuring it. The other is still here and we haven't heard a word from that lender yet....we're hoping to keep it as long as possible.

[Keebler]

If there is no relief of stay in place, I wouldn't give it up until there is one...but it sounds like they will come after it sooner rather than later (before discharge rather than after). Are you hoping to preserve your relationship with this credit union? If so, cooperate. If not, let them come after it. In our case, we did voluntarily give up one of our vehicles without a relief of stay being in place because we had already replaced it and didn't need the extra cost of insuring it. The other is still here and we haven't heard a word from that lender yet....we're hoping to keep it as long as possible.

We've been members of this credit union forever and they are convenient. On the other hand, the services are unexceptional and we're members of another one we like tons better. They've done nothing that deserves me being a jerk.

With school and work and all it's a little bit tough taking care of the family with only a single vehicle and we'd run the wheels off of it picking up and dropping off family members all over town. I really need a $500 POS to drive to work so the other vehicle is available for the wife and kids. I was hoping to buy some time and save up some cash before we lost it.

There's also a danger that we won't be able to reaffirm our second vehicle on acceptable terms and this is another reason why we need to find something cheap to drive because it might ultimately be the only car we have.

I looked at the court records here locally and I see examples where they have filed a motion to lift the stay with other debtors. Maybe they have a policy to give members a call to see if they can work it out the easy way before they go after the official solution that costs them money.

[b_girl]

From what I've read here, it seems like credit unions are more likely to go the 'relief of stay' route than are other lenders. I agree, they are probably trying to save some money by contacting you directly, but they are violating the stay and you have no obligation to talk with them. Buy yourself some time....direct all future inquiries to your lawyer and see if you can arrange to voluntarily give it away at a pre-set time (say, in 2 weeks) if you think you can buy another car by then. If not (you don't have the money or they don't agree), then let them go through the motion to repossess..it will take some time (probably not much, though) which you can use to get another auto lined up. Don't worry about being a jerk..wanting to take some time to work out your transportation issues is ok...you're just looking out for your family.

In our case, we got rid of the first vehicle on our own terms specifically because we were afraid that the bank would do to us exactly what your credit union is doing to you. We were able to replace it using a 722 loan..we ended up with a better vehicle with less miles and a lower payment, so we are happy. As for our 2nd vehicle, while we can do without it, we hope we won't have to, so we're trying to make arrangements for its replacement. If they do file a ROS, we're still ready, but it would definitely be an inconvenience.

[Cali]

b_girl - the company we financed both our vehicles wasn't a CU or a bank, it was a dealership and they did a relief of stay, even though I have 2 weeks left.