Chapter 7..Auto Loan..Reaffirm or Redeem..Let Go

[moburkes]

What is the name of your state? Ohio

I filed 10/14, under the old law, pro se. My 2003 Dodge is being financed with Wells Fargo. I have about 52k miles and a balance of over $8000. My car (in fair condition) is worth about $4300 based on KBB for mileage and condition. I have been turned down for a loan through 722 Redemption, which floored me because all of my payments have been on time. Whatever. Anyway, if I let the car go, how long can I drive it before they will pick it up? Does anyone have any idea? I'm trying to figure out what to do. If I stop making payments (starting in December) I will end up using that money to pay bills (instead of saving for a new car). When they do pick up the vehicle, what is the likelihood that I can get financed (at a HUGE interest rate, no way around that) right away? I don't need a fancy car, just a car.
Since I have no hope of redeeming it, it seems my only 2 options are to keep paying on a vehicle that's not worth what I owe, or letting it go.

Also if I let it go this will be my 2nd repo (1st was 9/03).

And, I will have to amed my petition (ugh) to change this.

[Ladynred]

If you let the car go in BK it will NOT be a repo.

What on earth were the reasons 722Redemption turned you down ? Giving people loans to keep vehicles is the REASON they exist !

Are you CERTAIN of that value ?? KBB can be high. Get a quote from a couple of used car dealerships and don't forget to subtract for any needed repairs.

You would not necessarily have to amend your petition.

Many people go out and get new car loans the day after they're discharged. The interest rates are muderous, but it IS possible. Dealerships just LOVE newly discharged bankrupts - -they KNOW they have them on the hook !

[moburkes]

Lady, thanks for the response. I put that my vehicle was in poor/fair condition, with high mileage, and some dents, etc. Even if high, its still much less than what I owe. Thanks for the heads up about it not being a repo since its in bankruptcy.

Yeah, not sure why I was turned down either. Couldn't believe it when the woman told me that. Blew my mind. Especially, since, like you mentioned, that's what they do, AND I've made all my payments on time for this vehicle. Oh well. I guess that I will let it go.

Why do you think I won't have to amend my petition? I will have to change from reaffirm to surrender. Or maybe I'm missing something. Thanks for your help!

[Ladynred]

You could amend your statement of intentions, but it won't make THAT much of a difference. If you've had your 341 meeting already, then I don't think it would be a big deal to leave it alone. If you haven't had your 341 meeting, you can just tell the Trustee you've changed your mind about keeping the vehicle and the Trustee will tell you whether or not to amend the statement of intentions. The car payment though will probably get put BACK into your disposable income. The "trick" to that is that the Trustee should allow you to put in an amount for a car payment for another vehicle since you have to have one, just assume it will be less than your current payment.

[moburkes]

That makes sense. My meeting isn't until 12/22. I'll leave the statement of intentions alone for now. Thanks!!! I've seen where the vehicles are being taken within about 20 day sof discharge. Do you have any info on that? Would I be able to get new loan prior to this vehicle being taken (which is AFTER the discharge, right) so I don't wake up one morning to go to work, and not have a car?

[SkankCheese]

You won't wake up and have your car gone. At this point, them getting the car is kind of a... procedure.
They've first got to 'apply' to have the automatic stay lifted- and you'll get notification of all this.

[moburkes]

Thanks, ScankCheese.