Is it ok to un-insure/register vehicle while waiting on repo?

[jupitert]

Hi,

I am awaiting on my Ch7 discharge, and I included a vehicle in my filing. I am surrendering the vehicle, and have already another vehicle to drive.

Said vehicle that was included in Ch7 is due for it's registration to be renewed, and I am still paying for insurance. Rather than pay these expenses, I would rather park the car in the driveway until it is repo-ed.

Is this ok, logical, risky, etc..?

Thanks in advance!

[NHC]

I wouldn't stop the insurance just yet.....you never know what is going to happen....hail storm? Tornado? Neighbor's pesky kid breaks a window...??

[jupitert]

Thx for the reply.

Say worst case, a hurricane wrecks the car. Whats my responsibility in the sense that I am no longer financially responsible for the car?

[paulkchoi]

also waiting

I'm in the same position. The registration is 1 month past due but I don't plan on paying it. The car is still fully insured. Just waiting for the CU to call.

[NoMoreCards]

You need to keep insurance on the vehicles until they are in the finance companies hands. If you are in a hurry to drop the insurance, give them a call and ask where you can drop it off. Most finance companies would be willing to allow you to drop it off and then you can drop insurance safely.

This is what I did, and I had no problems.

[albacore44]

Same boat here. was planning on calling GMAC next week to arrange a neutral place to meet the Repo guy. guess it would be safe to drop insurance after he takes it. What i dont want is GMAC trying to file an insurance claim, since it has some existing body damage.

[Exployer1234]

I was in the same boat last year. I just filed BK on 4/26. In Dec of 08' I stopped my insurance and the repo guy came in Jan of 09'. I got a statement in from my insurance company stating I had filed an accident report. The thing the "accident" happened a day after it was repo'ed. I called the insurance company ASAP and stated the car had been repo'ed. I asked for a copy of the report and asked for them to look in to the situaiton. Come to find out the loan company was trying to do insurance fraud. This is a big bank and my insurance was with a big insurance company. So needless to say the bank did not get a dime, and the "accident" has never been removed from my insurance record, even though I did not have possession of the car.

If I were you I would cancel the insurance the second the car is repo'ed. If the repo guy gives you a heads up that they are coming cancel the insurance. This way they can not get more money by filing an insurance claim that you did not do.

[tigergem]

Exployer, why wasn't the accident removed from your insurance record? I mean... if the insurance company knows it was fraud on the part of the loan company, and it was claimed after you cancelled the insurance, why wouldn't they remove it from your record?

[redquartz]

Bank still reporting on car loan

Question....my chapter 7 was discharged 11/09, One car loan is still reporting my payments and does NOT say IIB. My question is, I want to turn the car over to the bank, but how would I do that if they don't have it listed as being included in my bankruptcy? Should I call the bank and tell them that it was IIB? It takes too long to dispute it thru the credit bureaus.