How to Surrender a Vehicle in Bankruptcy
After filing for bankruptcy, you face a variety of difficult decisions about what to do with your assets, with property that you own. For example, if you own an automobile--and most people in bankruptcy do own cars--you may elect to surrender a vehicle in bankruptcy. If that is the case, if you elect to surrender your car in bankruptcy, there is a specific set of procedures that you need to follow to accomplish this objective.
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Instructions
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Notify the bankruptcy trustee in writing that you intend to surrender a vehicle in bankruptcy. Make this notification in advance of the creditor's meeting in your case. The creditor's meeting is the point in your case at which those businesses and individuals you owe money are provided the opportunity to meet with you and the bankruptcy trustee. Taking a proactive stance in regard to surrendering a vehicle allows you the opportunity to enter into a surrender agreement at the time of the creditor's meeting.
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Contact the lender that provided you the loan for your car. Advise the lender that you desire to enter into a surrender agreement and give up your car.
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Negotiate a date on which you will make the physical surrender of your car to the lender.
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Obtain a standard surrender agreement form from the office of the bankruptcy trustee. In the alternative, the lender that provided financing for your car likely can access a surrender agreement form as well.
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Review and sign the surrender agreement. Take the document with you to the creditor's meeting. If your auto lender is present, you can provide the surrender agreement to its representative. Provide a copy to the bankruptcy trustee as well.
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Tips & Warnings
Addressing all of the issues associated with a bankruptcy is a challenging and oftentimes complicated task. Therefore, if you are like most debtors, your rights and interests are best protected when you engage the services of an experienced bankruptcy lawyer. You can find directories of bankruptcy attorneys through the state and local bar associations that practice in the bankruptcy arena.
