topic Re: Surrendering Car Post Discharge with damage in Bankruptcy

Surrendering Car Post Discharge with damage

0REDSOX7 — Sun, 26 Jan 2014 00:57:50 GMT

Does anyone know how this works?

Back story.

June 3rd of last year - ran off the road and suffered minor damage to the passenger front fender. I have a copy of my police report to support this accident. Cost to repair approximately $750.00.

I could not and have not been able to afford to get this fixed as I had a $500.00 deductible with my auto insurance company. I simply cannot afford to do it.

I filed my bankruptcy on 10/23. I did not reaffirm the car.

Will Honda Financial have any issues with this when they reposses it?> I have read I need to prove that the damage was done prior to filing, which this police report shows. Just want to know your thoughts.

Re: Surrendering Car Post Discharge with damage

StartingOver10 — Sun, 26 Jan 2014 07:51:04 GMT

No, the damage affects value. You are surrendering the whole thing.

Contact your attorney and ask if there is something else you need to do to surrender. You said you filed Oc 23, shouldn't you be getting a discharge here shortly? Make sure your attorney is aware of the damage in case he has to file a form before your discharge (I don't know, that's why I suggested you contact your attorney)

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Sun, 26 Jan 2014 12:32:21 GMT

Thanks for the information.

My discharge should be on 2/4 - just over a week away.

The thing is, I did not state on my petition that I was surrendering, just going to do a pass through, and just maintain monthly payments. We have so much negative equity, plus this damage, that it makes sense to surrender shortly after discharge.

We told him about it during our initial consultation, so, not sure about if it will impact me.

I don't know when I am going to surrender, which probably makes this a little more difficult, because if there is a form, I don't want honda coming sooner than I am ready.

Re: Surrendering Car Post Discharge with damage

Tbklecka — Sun, 26 Jan 2014 13:33:02 GMT

Re: Surrendering Car Post Discharge with damage

ezdriver — Sun, 26 Jan 2014 15:56:10 GMT

Wait until you receive the discharge then call the company and make arrangements for it to pick up the car or for you to deliver it to a location with which they agree.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Sun, 26 Jan 2014 16:08:35 GMT

EZ, can they come after me to pay for the damage? I've read where they will file a claim on the insurance on my behalf. Just wondering.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Sun, 26 Jan 2014 16:10:56 GMT

I guess, should the damage be disclosed (either on petition or else where)?

Re: Surrendering Car Post Discharge with damage

ezdriver — Mon, 27 Jan 2014 16:53:05 GMT

@0REDSOX7 wrote:
EZ, can they come after me to pay for the damage? I've read where they will file a claim on the insurance on my behalf. Just wondering.

They can ... but they'll need the trustee's permission first. It is unlikely that any creditor will pursue such a claim as they are more afraid of violating the post-discharge injunction legal requirements.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Mon, 27 Jan 2014 17:31:45 GMT

Well I have the police report and body shop estimate to prove it happened prior to filing. So I should be covered there. The amount is 798 to repair the car.

My attorney is supposed to call me back today and the paralegal was unsure.

Re: Surrendering Car Post Discharge with damage

ezdriver — Mon, 27 Jan 2014 19:19:31 GMT

@0REDSOX7 wrote:
Well I have the police report and body shop estimate to prove it happened prior to filing. So I should be covered there. The amount is 798 to repair the car.

My attorney is supposed to call me back today and the paralegal was unsure.

I think that they will simply figure the cost of repairs into their recovery revenue. Those cars are typically auctioned off anyway. It is unlikey to end up in a primary dealer lot.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Mon, 27 Jan 2014 19:28:56 GMT

I hope that'sh ow it is - I can't imagine they'd get their panties in a wad over this - but, Honda is refusing to update my CR as being IIB, so, I would not put it past them.

Hoping my attorney calls me back soon so I can get this off my mind.

Re: Surrendering Car Post Discharge with damage

ezdriver — Tue, 28 Jan 2014 17:03:57 GMT

@0REDSOX7 wrote:
Thanks for the information.

My discharge should be on 2/4 - just over a week away.

The thing is, I did not state on my petition that I was surrendering, just going to do a pass through, and just maintain monthly payments. We have so much negative equity, plus this damage, that it makes sense to surrender shortly after discharge.

We told him about it during our initial consultation, so, not sure about if it will impact me.

I don't know when I am going to surrender, which probably makes this a little more difficult, because if there is a form, I don't want honda coming sooner than I am ready.

All that matters is that you did not reaffirm the debt. Stop making payments and tell them to come get the car. As long as they continue to receive payments, they will not take any action. The ball is in YOUR court to act.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Tue, 28 Jan 2014 17:40:25 GMT

EZ, that's my plan post petition - I just didnt know if they could file suit that the car was damaged/has damage and I did not repair it under insurance.

That's what I am waiting on my attorney to let me know about.

Re: Surrendering Car Post Discharge with damage

ezdriver — Tue, 28 Jan 2014 23:45:25 GMT

@0REDSOX7 wrote:
EZ, that's my plan post petition - I just didnt know if they could file suit that the car was damaged/has damage and I did not repair it under insurance.

That's what I am waiting on my attorney to let me know about.

I'm betting that they will not bill you for anything. They cannot comae after you for any difficiency between what they recover after aution and the principal balance that you owned on it. What is the wholesale value of the car without the damage? There are transportation, storage and auction fees that will be take out from the auction price. What do you think that they are likely to recover after all those fees? If it were me, I'd go ahead and turn the car in and deal with it if they came back to me for repair costs. Why is it taking so long for your attorney to give you some guidance?

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Wed, 29 Jan 2014 00:20:50 GMT

He was in court yesterday and part of today. The office closed early due to inclement weather.

Hope to hear from him tomorrow and let you know what he says.

Re: Surrendering Car Post Discharge with damage

0REDSOX7 — Wed, 29 Jan 2014 15:23:41 GMT

My attorney called me back today and told me that it should not be an issue.

There are no forms to fill out.

If Honda Finance wants, they can file a claim on my insurance and pay the deductible - should I be able to prove it was damaged prior to filing (which it was - I have police report and body shop estimate). But given the small amount of repair cost and damage, there shouldn't be an issue.