Portland Bankruptcy Law Group | Christopher J. Kane
Yes, you can choose to surrender the vehicle and discharge the loan in both Chapter 7 and Chapter 13. If you get your bankruptcy discharge you will not be liable for the deficiency balance on the loan after the lender takes the car and sells it.
Answer Applies to: Oregon
A Fresh Start | Dorothy G Bunce
Yes, although the courts in this jurisdiction have said it is not an option to surrender a vehicle in full satisfaction of the debt, if you surrender, the lender will only be able to file a claim for the deficiency on the vehicle.
Answer Applies to: Nevada
Stittleburg Law Office | Bernd Stittleburg
Yes, that is an option, however once the creditor takes possession of the vehicle and sells it at auction, any deficiency in the account will be treated as an unsecured debt and will be paid out according to your plan regarding unsecured creditors, i.e. how much will be paid to the unsecured creditors.
Answer Applies to: Georgia
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Yes it's an option, but I'm not sure i understand why you would be paying double to keep the car. If there is equity in the vehicle you should sell rather than surrender. If there is no equity then you would just pay off the loan. What you REALLY should do is consult with and retain an experienced chapter 13 to assist and guide you through the process. Chapter 13 cases are quite complicated and the success rate for those without representation is very, very low.
Answer Applies to: Colorado
Danville Law Group | Scott Jordan
What do you mean "paying double" for the vehicle? You only need to make the agreement monthly payments once. Yes, in Chapter 13 you can surrender the vehicle. Do you have another vehicle? Do you need one? If you need to purchase a new vehicle, you will need to obtain the Judge's permission.
Answer Applies to: California