Advice on vehicle surrender...m

iVillage Member
Registered: 03-27-2003
Advice on vehicle surrender...m
1
Mon, 06-23-2003 - 6:38pm
Does anyone have experience with voluntarily surrendering a vehicle back to the lender? DH and I filed BK and are awaiting our discharge papers anytime now. He has a newer truck that we pay $500 a month on, and we can't afford the payments anymore. Also, with 2 children, the truck is no longer practical for the family. We'd like to voluntarily surrender it. However, my van is 11 years old and is falling apart. I need to get a different vehicle as soon as I can once our discharge papers arrive. I've heard that a voluntary surrender is still considered a repo and that our chances of getting credit in the next 5 years, for anything, is zilch if we do this. Is it better to #1) Keep the truck, try to pay for a few months and trade it in on a different vehicle, thus taking about $4000 in negative equity? Or #2) Surrender it and take our chances? I need a newer vehicle as soon as I can get to work on cleaning up our credit reports, in about 3 months.

Thanks for any advice!

Lisa

iVillage Member
Registered: 02-14-2003
Mon, 06-23-2003 - 7:44pm
Hi Lisa. Since you've already filed bankruptcy, I don't know how much worse your credit can get. If your car is repossessed, it will be auctioned and you will owe the balance of the loan plus fees minus the amount received at auction. Say you owe $15,000 on the truck and the finance company gets $5,000 for it. You will owe $10,000 plus fees for a vehicle you're no longer driving. Yikes! Can you or your husband get a second or third job to afford the payments? It's a temporary solution until you can sell the car yourself and pay off the loan.

Be sure to check out our Car Smarts board for all your questions about cars, our Debt Q&A board for all your questions about debt, and Bankruptcy Q&A for all your questions about bankruptcy. :o)

CM Ms Joe Cool

Senior Community Moderator

moneylifecm@mail.ivillage.com

Ms Joe
CM Ms Joe Cool
Senior Community Moderator
moneylifecm@mail