How would a car surrendered in a bankruptcy show up on a credit report? I filed for bk on 11/27/01 and had my 341 meeting on 1/4/02. Since I filed for bk without a lawyer, I am scheduled to return to court on 2/28 to reaffirm my car loan. I have just learned that I will be having back surgery by the end of the month and will be out of work for nearly two months. I do have disability insurance that will pay 70% of my salary, but with the reduction in salary and the money I will have to pay out of pocket for medical bills, I simply won't have enough money to pay my car loan or keep up the insurance. I've already used up all my savings and cleaned out my pension fund and I've already borrowed too much money from friends and family. I know my bankruptcy will be a black mark against me in the future, but I don't know if surrendering the car will show up as a "repossesion" or as "included in bk" on my credit report and if they will preclude me from purchasing another car by the end of the year.
It will show up as a repo. If I were you, I'd call them and ask about deferring the payments for a month or 2. Some lenders are willing to do this.
My husband had a Ford Motor Credit included in his bankruptcy (listed as a creditor but not returned, so he kept making payments) and the notation onthe credit reports was always "Contact Member for Status." No payment history or anything, and when we'd call Ford about it they'd say it just the nomenclature they use on BK people and that the account was in good standing. When we traded the truck in several years later, the tradeline just dropped off altogether--and it wasn't a problem; the dealer just called, verified it was a good acct. and got the payoff. He later got another Ford MC account with no problem. I would try to avoid the repo route at all costs--if you are current on payments now and can scrape together at least one or two more, it really will be better in the long run. All the posts about people with repos have said they're rough situations to resolve. And call Ford--I know they have deferral programs because I remember my husband did one; something about skipping a payment. Good luck and I hope that the surgery goes well.
It will show included in bankruptcy with $0 balance but it will also reflect the acct history showing the months late and repo.
You should try and keep your car. My car loan was with Citicorp at the time and they offered me a deferment (twice) during my remaining 18 months until payoff. One deferment was 60 days and one was 90 days. What was listed on Experian (TRW at the time) was "included in BK". It stayed that way for 4 years until I cleaned it up prior to getting a home loan. I still have that car today. Also you should check with your human resources dept or disabilty plan administrator about your disability payments. Your payment should be 70% of your gross salary which should equate to your net pay. You may not lose any income while you are recouperating. Good luck and I hope everything goes well for you. KK
I did the same thing. It never showed as a repo, voluntary or otherwise. Just included in b/k. 0 balance
