QUESTION
I had a Chapter 7 Bankruptcy discharged, do I have to surrender the property?
Asked on Apr 30th, 2012 on Bankruptcy - Michigan
More details to this question:
I had a Chapter 7 Bankruptcy discharged on 2/11/2009. A 2006 motorcycle was included in this discharge. I continued to make the payments, however, now I can make the monthly payment. Do I have to surrender the bike?
14 ANSWERS
Burton J. Green
If you are current in the payments the lender probably does not want the motorcycle as long as remain current in the payments. This is something that you should discuss with the lender. The lender has the right to repossess the motorcycle or require you to surrender it.
Answered on May 02nd, 2012 at 1:16 PM
I cannot answer this question without additional information. If you had no equity in the bike, and it was not included in your exempt property, and you did not reaffirm the debt... the creditor still wants to get paid. If you make the payments and the debt goes away... they will never take the bike... it is yours. They only take the bike if you default on the debt.
Answered on May 01st, 2012 at 5:04 PM
Glen Edward Ashman
Unless you signed a reaffirmation, if they want it back they get it.
Answered on May 01st, 2012 at 1:16 PM
It depends on if the bank wants it back.
Answered on May 01st, 2012 at 1:01 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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That issue will be between you and the lender. I assume you did not sign a reaffirmation agreement to agree to repay the loan.
Answered on May 01st, 2012 at 12:24 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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Bereliani Law Firm, PC
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If you cannot make the payments then the creditor will contact you about your payments or to retrieve the bike. You are discharged from any deficiency balance you may owe on the bike, but the creditor does have a legal right to take the property back. Note: if you did sign a reaffirmation agreement during the bankruptcy, then you will owe a deficiency balance on the bike, if it is repossessed. If you do not remember, I would suggest contacting a bankruptcy attorney for more information.
Answered on May 01st, 2012 at 12:18 PM
Adoptions Attorney serving Middletown, RI
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Joseph F. Hook Attorney at Law
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The motorcycle appears to be the security of a bank loan. If you do not continue to pay the loan, the bank will be able to reposses the motorcylce. However, as long as you did not sign a re-affirmation agreement, the bank will not be able to come after you personally.
Answered on May 01st, 2012 at 12:14 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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There is no guarantee - but if they (the motorcycle lender) are accepting your payments you may be able to keep the motorcycle.
Answered on May 01st, 2012 at 12:12 PM
The lender is going to repossess the bike if you quit making the payments. However, because the debt was discharged in your bankruptcy case, you have no personal liability. The lender's only recourse is repossession.
Answered on May 01st, 2012 at 12:04 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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If the bike is secured by a lien then the lender has the right to repossess if the payments are not made.
Answered on May 01st, 2012 at 12:02 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If you are no longer able to make payments on the bike after a discharge was granted by the court, the bank may initiate proceedings to seize the property for failure to make payments.
Answered on May 01st, 2012 at 11:44 AM
Daniel James Wilson
Eventually lender will repossess.
Answered on May 01st, 2012 at 11:41 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You do not have to surrender the vehicle, but the creditor has a right to repossess it if you do not make the payment. The second question is - did you sign a reaffirmation agreement? If so, then the creditor can repossess the vehicle and sue you if there is a deficiency. If not then the creditor cannot sue, but they have a right to the vehicle.
Answered on May 01st, 2012 at 11:40 AM
If you did not sign a reaffirmation agreement, the debt was Discharged in your Chapter 7. However, the lien on the title was not automatically removed. The secured creditor has a right to repossess the collateral (motorcycle) if you stop making the payments- totally up to them. If you are extremely lucky, the secured creditor will voluntarily release it's lien on the cycle. That is very unlikely, however.
Answered on Apr 30th, 2012 at 4:37 PM