Repossesion and Repayment 'facorites'

[jbr12]

I am in the process of finding a laywer for my Chapter 7 case. I am currently 2 months behind on my auto payment. The lawyer I spoke with today was surprised that the bank hasn't reposessed the vehicle yet and she siad I should expect them to do that in the immediate future.

Does anyone have an idea of how long it generally takes before repossesion occurs? Are they required to send me anything in writing before this happens, or can they just show up anytime anywhere?

I am considering selling the vehicle, as it is worth about $1,000 more than I owe on it. If I were to sell it and pay the loan off, would this raise red flags during my chap 7 bk? Would the trustee see this as favoring one debt over another? I do I sell it, should I wait 3 months or so before filing?

[Viper]

Does anyone have an idea of how long it generally takes before repossesion occurs?

Depends on the bank but if your already 2 months behind you might want to clean out the car because it will be gone very soon.

Are they required to send me anything in writing before this happens, or can they just show up anytime anywhere?

nope, they can pick it up anytime anywhere... even while your at work.

I am considering selling the vehicle, as it is worth about $1,000 more than I owe on it. If I were to sell it and pay the loan off, would this raise red flags during my chap 7 bk? Would the trustee see this as favoring one debt over another? I do I sell it, should I wait 3 months or so before filing?

It's not favoring one debt over another because this is a secured loan. If you do sell it, and cash out $1000.00, be sure you document how you spend it. If you don't have any other sizable savings, you may be able to exempt it depending on the state you live in.

Viper

[FilingOnMyOwn]

I would say thats good advice. And chances are, you won't get the full value anyways, so you probably won't have 1,000$ leftover from the sale. But in the meantime, they will be taking your car anyday, so be prepared.

[jbr12]

Is it better to have my auto loan dealt with through bk, or is it better to have the car reposessed? I speaking better for my credit score.

I plan on giving up the car during the bk process, but I was wondering if I should try to file before the repossesion stuff starts with the loan company...