Mechanical Issues with surrendered car-is bank SOL?

[StewieGriffin42]

I am going to surrender a car to my bank that is part of my BK. Now the engine and everything is ok, however the car does not have mufflers b/c I removed them and tossed them out. So when the bank goes to sell this car, anyone who buys it is going to have to put on a whole new exhaust system just to make the thing legal to drive. There were some other parts that got removed from the car (I was basically doing modifications to make the car faster)

Now these mods were great for horsepower but terrible for the resale value. Am I correct in assuming that since the car is part of the bk that the bank is just SOL for whatever they lose when they go to sell this car?

[KevinR]

AFAIK they are indeed SOL. Don't get tricked into signing some reaffirmation papers. Lenders like to play games with paperwork during a bankruptcy.

If you don't reaffirm the debt and you get it discharged, they can't do anything to you.

[djk]

another thing to think about is the bank could decide to sue you for making illegal (federal law) modifications to the vehicle. but they would probably wait until after your discharge so the judgement is not included in your bankruptcy. banks do have the resources to wait.

[KevinR]

another thing to think about is the bank could decide to sue you for making illegal (federal law) modifications to the vehicle. but they would probably wait until after your discharge so the judgement is not included in your bankruptcy. banks do have the resources to wait.

There are federal laws about modifying vehicles? I was under the impression all that stuff fell under state and local law.

Anyway, if he surrenders the car I'd just tell them that it needed some work and he didn't have the money to fix it up. Any go fast parts that were added to the car I would take off before turning it back in.

[djk]

There are federal laws about modifying vehicles? I was under the impression all that stuff fell under state and local law.

Anyway, if he surrenders the car I'd just tell them that it needed some work and he didn't have the money to fix it up. Any go fast parts that were added to the car I would take off before turning it back in.

yes, the emissions laws are federal. I think removing the exhaust is a felony, but it might just be a misdemeanor. I doubt the bank is going to be very happy about the condition of the car if it goes back to them without factory exhaust.

[StewieGriffin42]

I belive you are thinking of the catalytic converter. I did not mess with that just the mufflers. mufflers don't have anything to do with emissions.

In many places it is illegal to drive on a public street without mufflers, but not to drive on a track or just have a car with no mufflers

[djk]

mufflers are actually for more than sound deadening, they restrict the flow and one of the reasons they do this is to continue to burn, through heat built up in the muffler body, undesireable gases. in any event what counts is if the car is legal. and you yourself state it is not. will it pass an EPA guideline emisiions test? perhaps. maybe you'll be lucky. Was there any wording in your loan agreement about making modifications to the car before the loan was paid off?

[FilingOnMyOwn]

I am going to surrender a car to my bank that is part of my BK. Now the engine and everything is ok, however the car does not have mufflers b/c I removed them and tossed them out. So when the bank goes to sell this car, anyone who buys it is going to have to put on a whole new exhaust system just to make the thing legal to drive. There were some other parts that got removed from the car (I was basically doing modifications to make the car faster)

Now these mods were great for horsepower but terrible for the resale value. Am I correct in assuming that since the car is part of the bk that the bank is just SOL for whatever they lose when they go to sell this car?

They aren't gonna do anything to ya man. The car will be sold at auction for a wholesale price.