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auto after bankruptcy

rmix
New Member

auto after bankruptcy

I filed Chapter 7 and had my meeting of creditors on June16.  I am surrendering 2 vehicles.  One does not run and I would like to get it out of my driveway as soon as possible.  Do I have to wait until discharge or can I call them and ask to have it picked up right away?  Also, for the second car, how long does it take after discharge for them to come and get the car?  Do they call you and arrange pick up or just show up and take it?  My attorney told me to keep driving it and insuring it, but to keep it repo ready.  So does that mean they will show up in the middle of the night and take it away?  And last question; after discharge should I go straight to a dealer to get an auto loan or get funding first, then pick a car?  I will need something to drive, and do not have the cash to buy outright.  I am only surrendering the 2nd car because I owe more on it than it is worth, and my son has wrecked it twice in fender benders.  Thanks for any advice!

Message 1 of 5
4 REPLIES 4
jmclaughlin1982
Established Member

Re: auto after bankruptcy

That's a lot of questions. Lol.
They will come get your car soon, I am surprised they haven't already. I told them I wasn't making payments and they came and took my car within hours. Be ready for the car to be gone at any moment, and yes it could be in the middle of the night.
As far as financing goes....go to a credit union or a dealership. Make sure you have your discharge paperwork ready to give to the financing place. I had great luck with it local Chevy Dealership. They worked on it for a day and I was approved for a 17000 car with 20% rebate and $500 down with Ally, this was 1 day post dc. Hope this info helps.
On a side note, I gave up my car before filing for the same reason. They sold me a 4000 car for 12000 WITH a 12.99% rate! I called the day of filing and told them to come get it! Now I have a brand new car with 24 miles on it for the same payment.
BK7 filed 3/23/2016 DC 6/20/2016


Current Credit
Ally Auto-$17000| Credit Builder Loan-$1000| Secured Loan-$1000| Cap 1 Secured-$400| Kohl's-$300| Milestone-$300| Gettington/Webbank-$500

AU- Chase Freedom-$500| Cap 1 QS-$500| Amex-$2000| Walmart-$910| Target Card-$300| Kohl's-$300| Credit 1-$300
Message 2 of 5
rmix
New Member

Re: auto after bankruptcy

But until the discharge happens in August, they can't pick up the car can they?  What about the other car?  Call them now and tell them to pick it up?

Message 3 of 5
harleygirl1987
Frequent Contributor

Re: auto after bankruptcy

When you file your banko an automatic stay happens, creditors can't do anything during this time, including picking up your car. If you want it gone, then you'll have to take it to them, or follow their rules to do a voluntary surrender. After the banko is discharged then they can pick it up. I worked for a few CUs and they generally would send you a letter saying that they were going to pick it up, prior and it was't a shocker if it happened. PenFed usually forgot till someone called, and the smaller local CU I worked with would send a letter/forget, but not as long as PenFed did.

Ch7 BK filed 7/5/16, DC 10/12/16
Message 4 of 5
jmclaughlin1982
Established Member

Re: auto after bankruptcy

Agree with Harleygirl's, however, they can repossess with permission from the courts. If they believe you will not keep the car after the discharge they can ask the trustee for permission to repossess and I don't know what would happen then. It all depends, as Harleygirl noted, on your lender. If you have no reason to keep the car and don't intend to keep it I'd say yes, just arrange with them to deliver the car to them. As for the one not running, that might have to wait until after dc. I don't know of any banks that will want to actively repossess a junker. Haha
BK7 filed 3/23/2016 DC 6/20/2016


Current Credit
Ally Auto-$17000| Credit Builder Loan-$1000| Secured Loan-$1000| Cap 1 Secured-$400| Kohl's-$300| Milestone-$300| Gettington/Webbank-$500

AU- Chase Freedom-$500| Cap 1 QS-$500| Amex-$2000| Walmart-$910| Target Card-$300| Kohl's-$300| Credit 1-$300
Message 5 of 5
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