Sounding like a thief, but I will ask anyway!

[Dollar Bill]

Has anyone ever included a auto loan in the BK, not pay the note...and didn't give the car back until you were able to.

I don't plan to hide the car or anything, I just wanted to know what happens.

Is it reported as a repo if you do not voluntarily give it up? Even though it's reported as IIB on the credit bureau?

I want to get another car before I give the one I have back; however, I don't plan to voluntarily give it back until I have my new car.

Anyone ever do this, or have problems behind this?

[HHM]

I guess it depends on how long we are talking about.

When you surrender the car, its reported as a Repo regardless of the BK so it does not matter if it is voluntary or involuntary.

If the car finance company is on the ball, they will arrange a specific date and time as part of their Lift Stay motion.

Here is how you buy time and CYA
1. On the statement of intentions, you list your intent to "surrender" (this is your CYA part).
2. But, you need to be current on payments going into the BK and keep making payments "during" the Bk. Once you receive your discharge, then stop making payments. Therefore, the car finance company will probably resort to the typical repo procedure.

If you are not current on payments going into BK, or default during the BK, the car finance company will file a motion to lift the automatic stay, and now there will be a court order for the car to be surrendered, if the car is not repo'd or turned over in a reasonable time, you could be held in contempt.

[momof5]

The Credit Union our car loan is through filed for a lift of stay and the court date was the 20th of this month. They came for the car on the 25th. Thats an example of how fast it all happened. The court order I have in my hand right now orders us to inform the lien holder of where the vehicle is located. Its already gone so that doesnt matter any longer. The point is...if you have a lien holder who wants this car back quickly they are going to persue it until they get it. Court orders and all.




I dont think this is something you can really plan or should plan.

[BKParalegal]

The standard operating procedure to keep the car, is on your Statement of Intentions, indicate that you are keeping the car, and then 60 days after filing amend it, to state that you are surrendering it. This will buy you an additional 60 days after filing minimum.

[Cali]

I have posted this several times on this board, but I will post it again.

I stopped payment on my SUV in March, filed in June stating I was surrendering it.

Dealership filed for relief of stay and had court date 2nd week of August. I called them a few days after and I asked when were they coming to get the SUV. They came the day after. I got paperwork from the guy picking it up, he got keys and drove off.

My attorney was surprised they filed relief of stay since my last day for objections wasn't that far off.

[Dollar Bill]

Thanks for the info everyone.

Well.....I do not want to be held in contempt. Sounds like I shouldn't play any cat and mouse games. I chose to reaffirm when I signed my petition. After preparing a REAL budget last night, I was shocked and couldn't sleep. As you will notice the time of this posting. It was approx. 4 AM.

I believe I have my answer now...thanks again.