Car we were planning on surrendering just broke - advice?

[pinkpeanut01]

My husband was on his way to work with a car we are all but sure we are surrendering, or at least losing since we're not expecting the credit union to agree to reaffirm (cross-collateralization issues). Well, it broke. He heard a funny sound, pulled into a parking lot, put it in park, got out to see what was wrong, and the car started rolling away - the transmission won't engage. Cha-ching. If we had money to fix it, we wouldn't be filing. A new transmission is probably about as much as the car is worth, so we aren't fixing it.

What I'm looking for advice on, is what do we do with it?? It's sitting in a parking lot. I don't want it. The credit union can have it! I'm calling the lawyer later, but thought I'd get some ideas here. (On a side note, the credit union has been calling daily about a personal loan I stopped paying.)

[disconapper]

Have you already filed? If so, just surrender the vehicle. If you haven't then you will get hit on your credit with a voluntary surrender rather having the debt discharged in your bankruptcy.

If you surrender...remove all your personal belongings, tags etc. Take tons of pictures of the car so you have proof of the condition, in case they try and give you a hard time. Although if it's included in your bankruptcy there is not much they can do....next...call the credit union and tell them where the car is....and let them know when/where they can get the keys....

[pinkpeanut01]

Nope - haven't filed yet. We were trying to wait it out a bit, but have all our paperwork in with the attorney to file at any moment. It would just take updating a few statements and numbers.

Thank you for the advice on taking pictures. I hadn't thought of that, and it's EXACTLY the kind of advice I was looking for. But wow - just call them and tell them! Today's going to be an interesting day, I can feel it.

[disconapper]

No problem. I read the picture thing on this forum as well, makes complete sense. I'd be sure you are filed before you surrender the vehicle though, make sure you have a case number. Otherwise, I'd leave the car where it is (or have it towed) if it's not in a safe place, and I'd certainly leave the tags, etc on it until you are ready to surrender.

[pinkpeanut01]

More great advice. I was just thinking about that while on the phone with him, and was going to ask that next re: surrendering before or after BK. Ironically, tomorrow is day 91 after last use of credit. I have AAA so I guess I'll get it towed somewhere. Now I need to figure out where.

[pinkpeanut01]

Just an update in case anybody else could benefit from the info.

I talked to my attorney just before he got evacuated for flooding (phew) and he advised to call the credit union and tell them where they can pick up the car - voluntary repossession. And he said we can certainly go out and buy a replacement car without worry, because we're allowed to have reliable transportation. He clarified that he's not advising me to take on new debt, but he's advising me that we need reliable transportation. We're going to have the car towed to a safe place, then call the credit union on Monday and tell them we're surrendering it. It'll also buy us more time before we file, which I really want and wasn't going to do because of this stupid car, to put more time between BTs and last use of our cards. So this might actually be a blessing. We'll get a more reliable car and buy more time. The attorney also said it'll benefit us on our means test to have a car loan, and however we go about getting a new car, like if we need a co-signer, a lien is a good thing in this case. And if/when we reaffirm this new car loan, it'll help rebuild our credit post-BK. And if we get sued waiting it out, so what - filing will take care of that. I think I covered it all.

Thank you again for the advice, disconapper.

[disconapper]

Oh great! I guess the Attorney knows best. It could all be a blessing for you, I hope it works out. And maybe...just maybe...the credit union will be slow on the repo and you'll file before they get it so you won't have the repossession hit on your credit.....just be sure to take pictures so if they come after you to fix the car you'll have evidence especially since you are including it in your bk....

[pinkpeanut01]

Since we "accidentally" paid the car payment this month on the now-broken-down vehicle (forgot to cancel auto-pay), we're going to just let it sit here for a month and hopefully file before they come looking for it. Might as well try to avoid a repo on top of a Ch 7. We were able to buy a replacement vehicle yesterday. Had to get bottom-of-the-barrel financing, but at least we'll have a car.