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Vehicle surrender during Chapter 7

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Regular Contributor

Vehicle surrender during Chapter 7

First I'd like to say thank you to this forum.  I used this forum to help my credit and financial situation prior to buying a house over 4 years ago and now (unfortunately), find myself filing for Chapter 7.  It's an unfortunate turn of events (spending too much, job change and making much less, emergency surgery, every swan song imagineable), but after much research, there is a lot of hope thanks to all of you, so thank you!  My 341 Meeting was 3/5/19 and I'm waiting for discharge.

 

I just reaffirmed my mortgage today and I originally was going to keep my vehicle, but after really thinking about it, I've decided I'm going to surrender it.  The payment is just too high for what I make and I owe much more than what it is worth.  I talked to my attorney about it and he mentioned updating my petition to let them know I would be surrending the vehicle.  He said it would be $300 for them to get the paperwork in order and it can be arranged for them to pick up the vehicle.

 

He mentioned that I have no contractual obligation to the vehicle and his assistant said, "Let me know if that is what you wanted to do."  I feel like they're indirectly telling me that this paperwork isn't a required document and because I haven't signed an affirmation agreement, I don't have an obligation to pay (the only payment I have "missed" was March which is when I decided I wasn't going to keep the vehicle).  

 

I have already emailed them to ask, but wanted to see your experience with this.  Can I just call the lender myself and arrange for them to pick it up after the discharge?  If I have to pay the $300, that's fine since I have it from not making the car payment, but if it isn't required (or necessary), I'd rather just do that.  Hope this makes sense!


Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Message 1 of 12
11 REPLIES 11
CGeorge
Frequent Contributor

Re: Vehicle surrender during Chapter 7

I don't know the answer to your question, but I just wanted to extend best regards to you. What you are going through is tough. Things will get better only with constant vigilence - and time. Very best of luck to you!

Message 2 of 12
FireMedic1
Community Leader
Mega Contributor

Re: Vehicle surrender during Chapter 7

Are you saying you reaffirmed and dont want to now? The cost would probably be what the court and lawyer charge for a declaration to change from reaffirm to surrender. Did the auto loan force you to reaffirm? Some do. Good Luck!


Message 3 of 12
Regular Contributor

Re: Vehicle surrender during Chapter 7

I have NOT reaffirmed the auto, just my mortgage.

Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Message 4 of 12
Regular Contributor

Re: Vehicle surrender during Chapter 7

Thank you CGeorge, that’s very kind of you to say. I shed a lot of tears and coming to terms with the feeling of “failure,” but I realized it’s okay. I’m moving forward and not dwelling in it Smiley Happy

Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Message 5 of 12
FireMedic1
Community Leader
Mega Contributor

Re: Vehicle surrender during Chapter 7


@tianapb725 wrote:
I have NOT reaffirmed the auto, just my mortgage.

Sorry. Your first post (second chapter) said you changed your mind after the MOC to not reaffirm the car. So it was reaffirmed then legally until they change the petition. Until that happens. Keep paying so no lates harm your score. After it is removed from affirmation then its a different ball game. Otherwise its still open. Thats what I meant. Good Luck!


Message 6 of 12
Regular Contributor

Re: Vehicle surrender during Chapter 7

Thank you for responding. Maybe I am confused, but I thought “reaffirmation” is when you sign the documents with the creditor that you are assuming the debt. That I haven’t done. I thought it was just the intent before the 341 (again, I could just be confused by the terminology if it is the same thing).

Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Message 7 of 12
FireMedic1
Community Leader
Mega Contributor

Re: Vehicle surrender during Chapter 7

Best thing is to ask your lawyer if it was or wasnt reaffirmed. You have to sign papers on intent to reaffirm. I did reaffirm. Wanted something positive after DC. Only had 8 payments left and was never late with Cap1. Which helped me begin the rebuild.


Message 8 of 12
Regular Contributor

Re: Vehicle surrender during Chapter 7

I can confirm that I did not reaffirm the auto loan. It was just on my statement of intentions that I intended to keep the car, but I have since changed my mind and want to surrender it.

Is filing an amendment for my intent required or can I simply just arrange for the vehicle to be picked up after discharge without paying $300 for unnecessary or not required paperwork? I have reached out to my attorney asking this and waiting for a response, so I wasn’t sure if anyone here had their own personal experience Smiley Happy

Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750


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Message 9 of 12
Anonymous
Not applicable

Re: Vehicle surrender during Chapter 7

I did not reaffirm my loan and once I finally told the lawyers after going back and forth with myself all I had to do was sign a form so that they could send it to the lender. I am not sure why they are charging you additional fees to do this, my lawyers told me to take my time and that they just needed the form prior to discharge.


@tianapb725 wrote:
I can confirm that I did not reaffirm the auto loan. It was just on my statement of intentions that I intended to keep the car, but I have since changed my mind and want to surrender it.

Is filing an amendment for my intent required or can I simply just arrange for the vehicle to be picked up after discharge without paying $300 for unnecessary or not required paperwork? I have reached out to my attorney asking this and waiting for a response, so I wasn’t sure if anyone here had their own personal experience Smiley Happy


Also they can't report anything late after filing so you don't need to make payments unless you intend to keep the vehicle, not sure why your lawyers didn't tell you this. I was able to get another vehicle (high interest but low miles which I will trade in) prior to discharge but I had the vehicle until a week after discharge because Capital One said legally they couldn't pick it up. 

Message 10 of 12
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