QUESTION
Can a creditor withhold my car title if my reaffirmation was fulfilled in bankruptcy case?
Asked on Mar 22nd, 2014 on Bankruptcy - California
More details to this question:
Does the creditor's lawyer have a right to ask for additional money after the discharge in order to release my car title even if other debt with creditor involved a $30,000 visa card that was charged off, not reaffirmed and fully discharged after bankruptcy two years ago? The car was collateral for itself only, and my only car during bankruptcy. The car was initially a refinanced loan, that I paid in full as agreed before bankruptcy case was filed in court. I was required to include all information on reaffirmation agreement in the bankruptcy. Please advise on how I can obtain my title rights in full. Thank you.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Since you paid off the reaffirmation agreement, the creditor must turn over the title to you. To enforce this, you can file a motion with the bankruptcy court. In your situation, I would first tell the creditor that you will go to the bankruptcy court unless they give you the title in a reasonable time (say two weeks), if they don't give you the title then file with the bankruptcy court.
Answered on Mar 25th, 2014 at 2:03 PM
You are correct, and the creditor's counsel is wrong. Go to your attorney, or if he or she is not available, ask another attorney for your options in your state. You have a number of rights. Good luck!
Answered on Mar 25th, 2014 at 6:23 AM
Let me guess...this loan was with your credit union, right? Credit unions all have cross collateralization provisions that allow them to do this, which is why I never let my clients reaffirm on a credit union vehicle & always suggest that they bail on the loan as soon as they can find another option.
Answered on Mar 24th, 2014 at 1:43 PM
No they can not that is the reason for the reaffirmation.
Answered on Mar 24th, 2014 at 1:19 PM
Based on the facts you described, it sounds like the creditor is in contempt of the discharge order and you could file a contempt motion in the court and recover the cost of doing so, including attorney fees. Once you file the motion, it is likely that they will capitulate.
Answered on Mar 24th, 2014 at 12:59 PM
Deborah F. Bowinski
Your question isn't making sense. I the loan was paid off before you filed your case then there would not have been anything left to reaffirm yet, you say you reaffirmed the car loan. What exactly is it that you reaffirmed? You should review the reaffirmation agreement you signed and make sure that it was filed with the bankruptcy court. If you had a lawyer for your bankruptcy you should contact him or her for assistance, or, at least, for some information and explanation. It is not at all clear who you reaffirmed with or why. I am also confused about the large credit card balance because a charge off has no real effect - it does not mean that you no longer owe the money or that the debt was forgiven. If there was still a loan secured by the title of your car, then regardless of whether it was reaffirmed you still must either surrender the vehicle or pay off the lien. If you signed a reaffirmation agreement then you must comply with all the terms if such an agreement.
Answered on Mar 24th, 2014 at 12:55 PM