Question What if my property is not complete anylonger?

[Tacoma-Man]

I finaced a classic car for about $12000, i belive it appraised for about $16000. Well one of the items i had to sell to keep up on the bills is the engine. I would like to just add the car into the bankruptcy. Can i?

[AngelinaCat]

If I understood you right, you have/had a classic car? Yes/no? What is it, all details please. That will help me better help you.

Now, if you actually own this car, and you have sold the engine, then you have 'parted the car out', and your value in it has dimished greatly. You will not be able to claim anything near classic car prices.

If you are still making payments on it, then perhaps you can include it in BK. I don't know what else to tell you w/o a little more information.

Good luck to you.

[AngelinaCat]

Here is a link to a recent discussion about another classic car:

http://www.bkforum.com/showthread.php?t=27499&highlight=classic+car

[Tacoma-Man]

I still owe on the car. $12000 actually. What i want to know is can i surrender the car and add it to the BK so i do not owe the $12000 any longer or will/can the finace company not except it becuase it no longer has an engine and make me responsable/keep the car for the debt even after the BK.

[AngelinaCat]

You are going to have a problem surrendering it because it is no longer the way you bought it. I do not think the fianace company is going to like you either.

If you are going to surrender a vehicle, it is my understanding, that it needs to be in good working order--much like you bought it in the first place. Then the finance company will sell it at auction, and you are responsible for the difference. That difference, they will sue you for.

[keepmine]

If you are going to surrender a vehicle, it is my understanding, that it needs to be in good working order--much like you bought it in the first place

This isn't correct. Many have surrendered cars that were money pits with all manner of mechanical issues.
The difference here is, why it's not in working order-a vital part has been stripped and sold.
Just not sure how this will work. The finance company would likely have a valid objection if they choose to pursue it. This is a good question for an attorney.

[lrprn]

You can surrender the car without the engine, but the creditor may or may not accept it.

If the car without the engine is still worth at least $1000, they are likely to accept it.

However if it isn't worth that much without the engine, then the creditor may not accept it. The problem for you is that even if they won't accept it, they also may not remove the lein which will force you to go to court to get the lein released if you want to put another engine in and sell it as a complete car. You can still sell the current car piecemeal - that doesn't require a lein. Of course, you'll probably make a lot less than selling it as a complete car.

No matter what, you'll still be rid of whatever was on the loan when you filed as long as you don't sign a reaffirmation form.