Surrendering Vehicle

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pickles

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Surrendering Vehicle
« on: August 05, 2014, 11:07:10 PM »
Does anyone know about the process for this ?
 We have contacted the Bank and told them about the Bankruptcy and that we wished to return vehicle also that the insurance was canceled and where the vehicle was . They are not saying they want proof on income ( that we cannot pay ) and to sign some release form . I am really puzzled as if we had missed any payments or if insurance lapsed they would be here in a flash ???  We have tried to do the right thing and had more hiccups ....We are just concerned about the vehicle sitting with no insurance... any help / suggestions /ideas would be appreciated .

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BAT2010

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Re: Surrendering Vehicle
« Reply #1 on: August 06, 2014, 07:31:06 AM »
Hi;

 I surrendered my vehicle during a CP, We told the bank we have stopped payments, who we are doing the CP through.

 Now the bank should if i remember correctly will set up a time with a towing/repo company to retrieve the vehicle. When they show up as you will sign some papers handing the vehicle and keys over to them, honestly you should not cancel the insurance until it's gone. The repo company will probably take a bunch of pictures to show the condition of the vehicle on repo, if he doesn't then when it shows up at the place they are taking and there is a bunch of damage it will decrease the value of the car making you responsible for the difference on bankruptcy. (i think thats correct)

 If you're still making payments they won't come get the vehicle,

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NotATrust-E

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Re: Surrendering Vehicle
« Reply #2 on: August 06, 2014, 09:49:27 PM »
Have you told the trustee about surrendering your vehicle? They may have been able to help, or at least suggest a course of action. In Ontario, one of the major companies is Canam Appraiz. Even if you aren't looking for suggestions, you should tell the trustee about what happened with the car because 1) It is an asset, and the trustee has an interest in  your assets and 2)So that your lender can file a claim for the shortfall.

Let's say that you have $10,000 left in your car loan. You file for bankruptcy and surrender the car to the secured creditor, let's say CIBC. If CIBC sells the car and gets $5,000 after selling, you are responsible for the shortfall. In this case, it is added to your bankruptcy.

If you had $50,000 in debt before, you now have $55,000. This won't make much of a difference, since this debt *should* be cleared by filing for bankruptcy.



 

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delica

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Re: Surrendering Vehicle
« Reply #3 on: August 21, 2014, 10:03:01 AM »
It took a couple of months for them to come pick up ours.  We stressed about it sitting in the lot as well but repo eventually called us and were really respectful about taking it away discreetly.

 

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