Auto Loan

[Greg R]

Hello.

I have recently filed for Chapter 7. I have an auto loan through a
credit union. I am "surrendering" the auto back in the bankrupcy
process. I asked about contacting them and letting them know my
intentions, but was advised not to. Now, I am getting calls and
letters. I refuse to drive the auto because of mechanical problems.
It is currently sitting at home. I was thinking about contacting
them anyway and making arrangements to give it back to them. Someone
told me that a voluntary surrender was much better than an
involuntary surrender. Then, someone else told me that both don't
make a difference.

Any suggestions or ideas? Attorney said it would take about a month
before the bank was notified.

 

[Dave Zass]

Any suggestions or ideas? Attorney said it would take about a month

before the bank was notified.

I'd follow the advice of your attorney.

When you say "Someone told me.....", "was advised....", "someone else told
me.....", I hope these people all have legal experience.

Bottom line is you owe money. Until the creditor gets notified of the
filing, they will continue to ask you to pay the money you owe them. Let
your attorney handle it.

 

[Wes and Linda Grady]

If you intend to surrender the vehicle, you have to do so in a reasonably rapid
time frame. Take your belongings out of the car, remove the plates and turn
them in to the DMV offices. Call the credit union and tell them to come get the
car. They will do so. They are not allowed to contact you directly because of
the automatic stay under section 362(a), and apparently your attorney hasn't
advised you to contact them. You will find that they are not going to discuss
the debt or repayment, just get directions to the location of the car and let
you know when it will be picked up.

C. W. G., Esq.
(NY)