Charged off vehicle, CH7, Pls Help! (No insults, only helpful responses)

[neoanderson1]

Hi everybody!

I originally posted this topic back in December. So I am going to copy/update my original post and hopefully the knowledgeable folks of this forum can offer constructive advice. I won't bore you with excessive details but I ended up in dire straits. I was homeless for 2 years and exhausted all of my savings/credit during this time. I have a 2015 Toyota Camry, I had no choice but to live in it (all of my possessions were in it). At the moment, the vehicle is at a garage. Payments have not been made in a bit over a year. The car note was charged off. I have a job now and can afford to make monthly payments with no issue at all. How can I keep this car and how can I go about this? If I file for bankruptcy, will this allow me to keep the car? I truly need the car for work and school (school is in Westchester NY, I work on the border of Long Island NY).

I need to file bankruptcy because I am not able to pay my revolving debt - 20k+.  My credit score is very low at the moment and I would like to get back on my feet. I do not have the 15k cash in hand for the vehicle as that would be considered the amount needed. Step by step, how could I keep this car? 

What is the process for filing bankruptcy and how many tax returns do I need to present? I live in NYC and go to college. I'm 26 years old.

**This is a serious topic and I would appreciate it if those who reply can offer constructive advice. So any advise would help. Please do not insult and offer solutions or experience with situations such as this if possible. 

[Anonymous]

If you file bankruptcy and want to keep the car, you would still have to pay for it.

[neoanderson1]

Thank you for your response. So I just wanted to understand the process a little bit better. If I file bankruptcy, would I be able to start making payments again? I read up something called 'reaffirming debt'. I have the money to make monthly payments with no issue moving forward as I have moved into a better space (financially). 

[Anonymous]

When I filed, I reaffirmed my car and continued to pay it off. I was never behind on it and only had about 9 payments left. I'm not sure what would happen since your car is already charged off. Some people do not reaffirm, but they keep paying and keep the car. I don't know how that would work since you said you haven't paid in over a year. When you say it's in a garage, do you mean it's not working?

[tricie17]

As I do not know how New York considers bks in the different areas, your first stop is a good Atty.  Now on to the car, the bk will stop all financial institutions from collecting with an automatic stay however the collection will pick up again if you do not start up payments again.  In your case by you keeping the car garaged for a year or longer, you may want a chapter 13 to protect that asset while you gather yourself and get a handle on things.  Being homeless is hard, I have been there.  Learn some lessons along your journey and do not use the system because it`s there.  Wishing you well.

[tricie17]

You do not have to reaffirm especially because of the charge off. If you file ch 13 you will be protected by the automatic stay as long as you continue to pay the note.  Now with that said, depending on the what finance company you have, they can always petition the court to release the stay so they can pick up the car which is rare.  If and when you do file keep an eye on pacer for the actions during the process.  "Information given only as suggestion".  Always check with Atty.

[neoanderson1]

Hi folks, thanks for the responses. 

I just wanted to make sure I am understanding this. So it is indeed possible that I keep this vehicle? I am not in a position to file a 'chapter 13'. I do not have much in the way of assets or possessions to begin with. I'm also back in college. So I do need the car to get to and from work versus constantly paying for taxi services/rideshare. Unfortunately, our subway/transit system has really started to suck of recent here in the city.  

*What I am curious about is this... If I file Chapter 7 and it is allowed, what mechanism allows me to keep the vehicle and restart payments?
*The vehicle is in a garage, I surrendered the plates on the car back to the state (stopped paying insurance). It made no sense to keep paying insurance on a car that was not being driven. 
*The car is beyond the reach of human eyes.

*So all updates about the process will be posted on Pacer? 

[Anonymous]

Op, you have very specific questions. Short answer, yes it’s possible to keep the car. The more accurate answer, speak to a BK attorney in your state. 

As for insults, no worries. While we may give constructive criticism at times, we don’t do insults here. (If there is ever a situation, please report the post and it will be taken care of). 

Good luck! 

[neoanderson1]

Thank you very much,

Perhaps it's because I'm accustomed to rude people on the internet that I added that disclaimer to the post regarding insults. This is a very tense situation for me and I know how crude people can get on the internet. 

I'm nervous about the entire CH7 process but hope to get my credit in shape and will due the necessary things to get it situated.