Vehicle Situation...Need advice

[KyrissasMommy]

Well we filed BK on Oct 10. Our 341 isn't scheduled until Jan 9. We have decided to surrender our vehicles and get ones with a cheaper payment. Well we have been driving both our vehicles and stashing away the monthly payments to save for a down payment. Now we have been contacted by the credit union to contact them by Nov 15....TOMORROW to make a decision on either surrendering the van or catching up on our payments. We contacted 722 redemption and they aren't working with our state yet. ...Just our luck! What should we do? We both work and can't be without a vehicle. Should we surrender it and go try to get another vehicle. HELP!!!

[Mysocalledlyf]

Well you have to decide which is the most beneficial in the long run...give up all that money to catch up on your car, if you do that, you might as well stay caught up...but then you will be stuck in the future with a high payment. You could possibly try to get another car with little to no down payment, possibly a trade in with it? (not sure if you trade it in, if its discharged though). But getting another car w/o a good down isnt very likely coming out of BK. Another thing, which seems like something you might have to consider is going to a "ma and pop" shop, where your job is your credit, type thing, you know? this will secure your financial situation with wheels in the future. They cant take your car without getting a hearing first. So basically you should start thinking about or searching the internet for car loan approvals for people in BK. If you find something feasible, then give up your car in a couple of weeks. If not you might have to do the catch up thing, and then after Jan, see what car dealers can do for you after your discharged without any money. Some people will let you give them the down payment, in two payments.

[AAAArt]

You might try talking to them or mailing them a letter stating that you need to research this further (or discuss with attorney) and won't be able to give them an answer for a few weeks.
You could ignore them and try to buy some time that way, but my fear is that the vehicle would then be repossessed and you wouldn't know when. Also if you say that you want to surrender they will prob. want the van real soon.
Unfortunately, if you lose a vehicle or payment, that will have to be reported at your 341. Will that throw you into a chap. 13? Are you upside down on the cars? Can you afford the payments? Only the two of you can decide this, but there are items to consider both ways. Art

[Viper]

When did they contact you, before or after you filed? They are not able to try to collect any money once you file, nor can they repo. There only options are to 1) file a relief of stay (once granted they can repo) or 2) wait until your bk is discharged/dismissed then repo. If they have contacted you after you have filed be sure to notify your lawyer and trustee.


-Viper

[KyrissasMommy]

Well we talked to them today and they just wanted to know what we intended to do with the vehicle. We told them we wanted to surrender it eventually and we told them that we were in the bk process. He said that he wouldn't come get the van until after the discharge.... so that will buy us some time and we can stash away those payments....thank you all for your help!!!!