Is it ok to surrender my car back to the bank before my Chapter 7 Bankruptcy is finalized? I've already attended the hearing, I am expecting a successful Chapter 7 release soon but not sure exactly what date, I have the car listed on my Debtors Statement of Intention as "Surrender", the next car payment is due this Saturday, I don't have the money to pay it, will I jeapordize my Chapter 7 release by surrendering the car back to the bank now, should I wait until my release arrives in the mail, or does the timing of this not really make a difference?
You would not have any problems if you surrender the vehicle. As a matter of fact, if you keep the car after the payment due date, you do not have to make the payment, because the debt will be discharged. Just keep insurance on the vehicle until the creditor gets the car back.
