Surrender car in chapter 13

Bankruptcy and Debt 2 views 3 answers
I need to surrender my car in my chapter 13 bankruptcy to the finance company. After the meeting of creditors is completed is there a specified date when I have to surrender the car? My chapter 13 has not yet been confirmed.

Attorney Answers

3
Gabriel Waddell ·
There is not a specific date, although the automatic stay is not lifted to allow them to repossess until your plan (providing for surrender of the vehicle) is confirmed. After plan confirmation, while you don't need to affirmatively deliver the car or take any action like that, you should probably cooperate with the creditor to allow them to pick up the car.
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Derek Caldwell ·
No specific time frame to give the car back. After your case is confirmed, the stay will lift and they can come repo the car. Once your case is confirmed, you may be able to arrange a surrender of the vehicle so you don't get stranded somewhere. Try contacting the lender when the motion to confirm your plan is filed by the Trustee and arrange a convenient surrender.
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David Shevitz ·
There is no specific date to surrender the vehicle. However, you must indicate in your Chapter 13 plan how to treat the finance company. If you intend to surrender the vehicle, that needs to be indicated in your Chapter 13 Plan. It is typically then up to the finance company to either repossess the vehicle upon confirmation of your Chapter 13 plan, or they may file a Motion for Relief from the Automatic Stay to be entitled to repossess the vehicle. The lender may have specific instruction on how they want you to deliver possession of the vehicle back to the, Once the lender repossesses the vehicle, they may be entitled to file a proof of claim for any deficiency balance that is owed on the vehicle. If you purchased the vehicle, they will auction the vehicle and then possibly file a claim for the balance still owed to them under the contract if the car is sold for less than what you owe on it. If it is a lease, they will likely file a claim for the amount owed under the contract that has not yet been paid.
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