Auto Repo's and Cell Phones

[jbr12]

Been lurking for awhile and just had a couple of questions....

I currently have a 2002 Jeep that I owe around 10,500 on. I'm 2 payments behind right now and about to file for bankruptcy. The NADA Value of the Jeep is 12,500. I was considering selling the Jeep and paying the loan off prior to bankruptcy. Once I file bk, does it keep the bank from repo'ing the vehicle prior to the end of the bk case? If I sell the jeep, will the courts considering that favoring a creditor or whatever its called? I was hoping to use that extra bit of money to buy a new car that would fit under my state's exemptions...

Second question- I'm currently 2 months behind on my cell phone payment. I have considered canceling the phone and going the prepay route. If I cancel, I'll have the balance, plus a $200 fee that would be sent to collections. If I get the collection notice, how long would I have to wait to file for it to be covered? My worry is if I file too quickly, I will be stuck with this collections and it won't be discharged

[lrprn]

Been lurking for awhile and just had a couple of questions....

I currently have a 2002 Jeep that I owe around 10,500 on. I'm 2 payments behind right now and about to file for bankruptcy. The NADA Value of the Jeep is 12,500. I was considering selling the Jeep and paying the loan off prior to bankruptcy. Once I file bk, does it keep the bank from repo'ing the vehicle prior to the end of the bk case? If I sell the jeep, will the courts considering that favoring a creditor or whatever its called? I was hoping to use that extra bit of money to buy a new car that would fit under my state's exemptions...

Second question- I'm currently 2 months behind on my cell phone payment. I have considered canceling the phone and going the prepay route. If I cancel, I'll have the balance, plus a $200 fee that would be sent to collections. If I get the collection notice, how long would I have to wait to file for it to be covered? My worry is if I file too quickly, I will be stuck with this collections and it won't be discharged

Since you are in the Ch 7 folder, is it safe to assume that you are hoping to file a Ch 7 bankruptcy? Are you certain you will qualify for a Ch 7? Do you plan to file pro se (without a lawyer)?

Question 1: Any exchange of expensive assets like cars within 6 months of filing will be looked at with suspicion by the trustee, especially if the older car is still running well. An exchange of an in-decent-shape 2002 for a new 2006 within six months of filing will be looked at with a LOT of suspicion.

Question 2: Debt owed to a collection agency is also covered on the day you file bk. Just be sure the collection agency is listed on your list of creditors.

One word of warning - if you do file bk including a utility like your cell phone company, be prepared that for a long time to come you may be asked to put a large deposit down in order to get service with any cell phone provider.

[jbr12]

I figured the car thing would be too suspcious... A couple of cars I was looking at were mid-90s cars... so I'd be going from the 2002 Jeep to a mid-90s sedan...

I figured it would be awhile before being approved for a cell phone again... I'm looking at just sharing a plan in my fiance's name or go the prepay route...

Oh yeah, I'm hoping to file Ch 7 and am considering filing pro se. I'm well under the state average income (~$8k under) and shouldn't have a problem with the means test. I do have a couple of meetings with attorney's next week just to get their take on the matters.

[SinkingFast]

In order to go Ch 7 and keep your car, you are gonna have to bring those payments current.

Ch 7 is Liquidation BK. If you're in arrears on a mortgage or auto payments, you cannot file Ch 7 and keep the asset.

If you're in arrears on the day you file, you must be prepared to release the Jeep to the Lender.

[jbr12]

I guess I didn't mention I do not plan on keeping the Jeep through the bk... My question on that was should I sell the jeep prior to bk and use the profit to buy a older used car, or just allow the trustee to claim the vehicle...

My question about reposession was poorly phrased. Lets say that after 3 missed payments, the bank would normally repo the jeep. If I file bk, does the stay effect the repo to allow me to keep the jeep a little longer and use it until the trustee takes it? Can the bank get an order after the stay to be allowed to repo the jeep?

[SinkingFast]

Timing filing to dodge a repo is tricky.

Once you file BK, the Automatic Stay protection goes into place. It takes about a week or so for Creditors to get notified via the Court. That's kind of a grey area period of time where you are under Stay protection, but the Creditor does not yet know you've filed. So maybe the thing to do would be to call the Lender and "inform" them of your filing, your attny's contact info, and your case number.

Some Lenders will leave you alone once they learn you have no intent to reaffirm. They'll just save the legal fees and wait. Others will file a Motion to Lift Stay so they can get the car back. So it's really dependent on the Lender if you'll get to keep the car for the duration of your BK or not.

When you do get to the point where it's time to return the vehicle, contact the Lender and arrange to return the car. Don't just allow it to be repo'd. You don't wanna come out, ready to go to work one morning and find no car to drive. Or leave the grocery with a cart full of food only to find your car has been taken while you were in the store.

Arrange a mutually agreeable public place and time to meet a Rep of the Lender. Meet and turn over the keys and the car. Have the Rep sign a written statement that you turned over the car on X date at Y time to Z person. Maybe even make notations about the condition of the vehicle. CYA yourself with a paper trail of the transaction.