QUESTION
How can I dispose of a vehicle with a credit union lien?
Asked on Jul 18th, 2016 on Bankruptcy - Ohio
More details to this question:
My husband and I filed bankruptcy over 5 years ago. My vehicle was cross collateralized with a credit consolidation loan I opened just before losing my job. After the bankruptcy, I made all payments on the auto loan. However the lien against the vehicle is for the $2500 consolidation loan, which was discharged in the filing. I am not obligated to pay, but I don't want to keep the vehicle anymore either. If it sold for $500, I'd be surprised. What can I do?
3 ANSWERS
I suggest offering to return the vehicle to the Credit Union or agreeing to take it off their hands for $100.
Answered on Aug 15th, 2016 at 6:29 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Where was your lawyer in all of this? He or she should have seen to it that the lien was satisfied, if, as it appears, it should have been. While it's a bit late in the game, you might want to get a lien release or satisfaction ? of ? lien document. Any well-informed buyer of your car will want that document, so he or she can register it.
Answered on Aug 15th, 2016 at 5:56 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The bankruptcy discharged your personal obligation to pay the loan to the credit union, however, it did not remove the credit union's lien on the vehicle or give you clean title to sell the vehicle. You should send the credit union a notice that you will not make any payment on their discharged debt and they have 30 days to either repossess the vehicle or send you clean title with their lien removed. If they haven't done either in 30 days, that you will file a motion for sanctions with the bankruptcy court for violation of the discharge injunction.
Answered on Aug 15th, 2016 at 5:55 AM