turning car in?

[westchiburbs]

I will be changing from a Ch13 to a Ch7 in the next couple weeks.
If I voluntarily turn my car back to the bank that financed it, does this show as a repo on my credit?

[StartingOver08]

No, you are surrendering the car in bankruptcy, it will show as iib (included in bankruptcy)

[hopefulbk]

So it's better to turn the car in after you file so shows it's included in bk?

[StartingOver08]

Yes, that way you have one major event, BK, not a series of events: repo, BK.

[marinah]

what if you....

..do a ride-through (keep paying the car payments until discharge) then give it back to the bank AFTER the discharge? Is it still one event (the BK), or is it a bk with a repo afterwards?

[StartingOver08]

It's still one event! That's why most everyone here suggests a ride through - because if something negative happens after your discharge you are not obligated to continue to pay as the vehicle is iib! Best of both worlds.

[queenbee]

we turned ours over..had to bank insisted and we weren't late it was a cross colleteral...BUT we included it in the bk as a creditor ao will we have 2 events repo and bk...that will suck! the turn over and bk filing are apx 2 weeks apart thanks!

[StartingOver08]

we turned ours over..had to bank insisted and we weren't late it was a cross colleteral...BUT we included it in the bk as a creditor ao will we have 2 events repo and bk...that will suck! the turn over and bk filing are apx 2 weeks apart thanks!

Were your cars listed in the BK as surrender?

Did you have the repo before the BK? That is the only way it can show as two events is if the repo was prior to the BK.

If you filed BK first, then the creditor can NOT show your vehicle as a repo!
Don't let them snow you. If it shows on your cr report, then you have the right to correct it.

[queenbee]

I am not sure how they are listed but yes, the surrender was before the BK, but they are listed in the BK I will ask the atty. I would think he listed them as surrender. I hope anyway.

[marinah]

Thank you, StartingOver. This is working out to be a good deal for us, we get rid of our debt in our bk plus we get to get rid of a car that I hate.