Q: I want to know the negative financial consequences of deliberately allowing a lienholder to repossess my vehicle to me
A Ch. 13 conversion into a Ch. 7--Bank wants back $2800, and really gouged me on monthly payments, increasing from the prior agreed on rate of only $115 a month payments (the Ch. 13 Trustee won that). No more need for this 11 year old vehicle which is now worth market value of only $1700 at most. Can't resell it. If they repossess, will they garnish my social security benefit, my only source of income now? Will I be sued after repossession? What negative impact on my credit worthiness. No, I am not going to stage a car crash. I'd just like to examine my options. The bank has been inflexible and rather nasty.
A:
I’m not sure if your in bankruptcy now or not?
If you are not in bankruptcy and they repossess your car they can sue you or garnish you. You can give up the car in a chapter 7 bankruptcy and not be liable for it? If you are no longer in bankruptcy and you give up the car they can not garnish your social security. However, They can put a levy on your bank account or a lien on any other property if they sue you and get a judgment.
A: Is your Ch 7 still pending? Did you list the vehicle in the statement of intention? You may need to amend that to surrender the vehicle. Did you sign a reaffirmation agreement? If you surrender the vehicle, they can not come after you for any deficiency. That would be dischargeable. Talk to your bankruptcy attorney?
A: As long as you have not reaffirmed the debt, and you have converted to Chapter 7, the damages after repo and the deficiency on the loan will be discharged. However, make sure your petition correctly identified this lien, and amend your statement of intention to return the car.
A: Surrender the car and walk away.
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